Preston Bank, an Australian bank, currently has a CET1
ratio significantly below APRA’s required 10.25%. The bank anticipates
$305 billion in risk-weighted assets in the coming years. Considering the
challenges under Basel III, which of the following would be the most effective
action to help Preston Bank meet its capital adequacy requirement?

Question

Answer

Increase deposit rates to attract more depositors

Answer

Increase dividends to attract investors and boost
share price

Answer

Move resources to higher return and higher risk assets
to raise income

Answer

Offer a dividend reinvestment plan to encourage
shareholders to purchase new shares

Crowdly

Preston Bank, an Australian bank, currently has a CET1 ratio significantly below...

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