Question: A bank is currently undercapitalized in terms of its Tier 1 capital (i.e., not meeting the minimum capital requirement) according to the Basel III capital

A bank is currently undercapitalized in terms of its Tier 1 capital (i.e., not meeting the minimum capital requirement) according to the Basel III capital requirement, what can the bank do to meet the capital requirement? a. Issue equity capital b. Reduce the dividend payout c. Divert the investment in risky assets into safe assets d. Increase reported income From the bank's perspective, and briefly discuss the cost and benefit of each choice available to meet the requirement

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