FI has capital shortage and needs to review other sources of internal capital or raise more capital.

FI has capital shortage and should conduct a share buy-back.

FI has capital excess and should conduct a share buy-back.

FI has capital excess and should re-assess dividend policy to reduce the dividend payout ratio.

special dividends meant to distribute retained earnings to stockholders.

bonuses paid to executives of the institution.

lending to international entities.

regularly scheduled dividends paid to stockholders.

buyback programs of common stock.

7.45%

7%

10.64%

9.57%

5.7 percent

5.18 percent

8.2 percent

7.43 percent

7.45%

10.64%

9.57%

9%

taxpayers.

insured depositors.

regulatory authorities.

liability holders of an FI.

equity holders of an FI.

Tier II buffer.

Loss-absorbing buffer.

Non-risk-based capital buffer.

Leverage buffer.

Capital conservation buffer.

enhance global movement of funds to those countries experiencing excess aggregate credit growth.

force DIs to immediately adjust capital to meet the 2.5 percent level of buffer capital required.

assist insolvent banks to build capital during economic expansions.

increase the resilience of the banking system and reduce systemic exposures to economic downturns.

Based on the regulatory compliance cost effect, banks should use more debt and less equity.

Based on the capital risk effect, banks should use more equity and less debt.

Based on the tax deductibility of interest expenses, banks should use less debt and more equity.

All of the above are correct.

Non-risk-based

leverage ratio

Simple

capital ratio

Gearing

ratio

Liquidity coverage ratio

Risk-based

capital ratio