The net regulatory burden on financial institutions refers to:

Question

BlackTom AI · Accepted Answer

When evaluating the concept of net regulatory burden on financial institutions, it's helpful to break down what each option implies before judging which best captures the idea.
Option 1: 'The total cost of complying with all banking regulations' focuses solely on costs, ignoring any regulatory benefits or mitigations. While compliance costs are a major component, this framing omits the beneficial aspects of regulation, such as safety, stability, and consumer protection, which are essential to assessing net burden.
Option 2: 'The additional capital requirements imposed by Basel III' refers to a specific set of requirements rather than the overall concept of net burden. Basel III is a particular regulatory standard; describing the net burden as merely these requirements would be overly narrow and fail to account for the broader balance of costs and benefits across the regulatory landscape.
Option 3: 'The difference between regulatory costs and the value of regulatory benefits like the safety net' explicitly captures the notion of net burden by weighing what is spent against what is gained from regulation. This framing aligns with economic and regulatory impact analyses that compare costs to benefits, including the safety nets and depositor protections that regulation aims to provide.
Option 4: 'The costs of regulation minus the benefits of regulation such as deposit insurance' resembles option 3 but is phrased in a more limited way, focusing on deposit insurance as the primary benefit and potentially omitting other important regulatory benefits (like market integrity, consumer protection, and systemic risk reduction). It also implies a fixed set of benefits, which may not encompass the full spectrum of regulatory advantages considered in net burden assessments.
Overall, the most comprehensive and accurate framing is the one that accounts for both costs and a broad set of benefits, rather than emphasizing costs alone or restricting the benefits to a narrow subset.

BU.231.710.51.FA25 The Final Exam

The net regulatory burden on financial institutions refers to:

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BU.231.710.51.FA25 The Final Exam

The net regulatory burden on financial institutions refers to:

查看解析

登录即可查看完整答案

类似问题

Which of the following statements is false?

Countries around the world adopt bank regulation broadly consistent with the framework issued by the Basel Committee because

The supervisory and regulatory activities of each Federal Reserve Bank in its district includes the authority to do which of the following?

Each Federal Reserve Bank has supervisory and regulatory authority over the activities of Blank ______ and Blank ______ located in their districts.

The Federal Reserve Bank has primary responsibility for the supervision and regulation of

Nationally chartered banks ("National Banks") are those chartered through the

In the area of bank supervision, which of the following are functions of the Federal Reserve Banks? Examinations of state member banks Approval of member bank and bank holding company acquisitions Deposit insurance

The regulation required under Basel II is more costly than that required under Basel III, due to the higher liquid assets requirements and the higher levels of primary capital.

更多留学生实用工具

希望你的学习变得更简单

Each Federal Reserve Bank has supervisory and regulatory authority over the activities of Blank and Blank located in their districts.