ABC Bank is an Australian bank and has been growing its balance sheet through using...
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ABC Bank is an Australian bank and has been growing its balance sheet through using leverage. In the upcoming year, the management projected a total risk-weighted assets of $305 million and CET1 ratio of 9% which is far from the 10.5% CET1 capital ratio required by APRA. In view of this challenges, which of the following actions should ABC Bank consider to help meet this challenge?
Select one:
a.
Issue hybrid capital instruments to boost CET 1 capital
b.
Move resources to higher return and higher risk assets
c.
Acquire more deposits
d.
Stop dividend reinvestment plans to increase share equity
e.
Cut share dividends to boost retained earning
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