Question 13: A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: a. b. 0. Issue new equity, such as through a rights issue to existing shareholders, an equity offering on the open market or placing a bloc of shares with an outside investor. Increase retained earnings by reducing the share of its prot it pays out in dividends. Reduce its risk-weighted assets by replacing riskier (higher-weighted) loans with safer ones, or with government securities. Changes to the assets side of its balance sheet, for example, the bank can run down its loan portfolio, or sell assets outright, and use the proceeds of loan repayments or asset sales to pay down debt. All of the answers