Question: This situation creates a clear conflict. Shareholders typically seek aggressive investments for higher returns, especially in booming urban markets, while regulators prioritize stability and liquidity.

This situation creates a clear conflict. Shareholders typically seek aggressive investments for higher returns, especially in booming urban markets, while regulators prioritize stability and liquidity. Excessive exposure to real estate can jeopardize both the bank and the broader financial system, a risk that became evident during the

2008

crisis.

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