Microprudential supervision does all of the following EXCEPT
A)checking capital ratios of a bank.
B)checking a bank's compliance with disclosure requirements.
C)assessing the riskiness of an individual bank's activities.
D)focusing on financial system liquidity.

Question

Quizplus · Accepted Answer

Microprudential supervision focuses on the safety and soundness of individual financial institutions rather than the stability of the financial system as a whole. Therefore, it does not typically address financial system liquidity, which is the domain of macroprudential supervision. Microprudential supervision typically includes activities such as checking capital ratios, assessing risk from individual bank activities, and ensuring compliance with disclosure requirements.

Microprudential Supervision Does All of the Following EXCEPT