16. The concept of \"macroprudential supervision\" includes which of the followi

Question

16. The concept of "macroprudential supervision" includes which of the following procedures? CIRCLE ALL THAT APPLY (2 points) Ensuring that financial institutions have a sufficiently low Net Stable Funding Ratio (NSFR), which is the percentage of the institution's short-term funding in relation to total funding. a. b. Setting forth capital requirements to reinforce the leverage cycle. c. Focus on the compliance with disclosure requirements by each institution d. Assessment of the health insurance policies for the bank's senior management.

Explanation / Answer

16.

B.

C.

As per the macroprudential supervision, capital requirements should be implemented in each of the banking institution as per the Basel III accord. Further, the following of the compliances set for the financial industry is mandatory under the macroprudential supervision.

NSFR should not be low and it should be at least 100% as per the Basel III accord.

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