Question

A smaller Community Bank will usually have ______________ compared to a very large globally systemically important...

A smaller Community Bank will usually have ______________ compared to a very large globally systemically important financial institution (G-SIB).

A.

A higher percentage of business loans

B.

Greater use of off-balance-sheet derivative contracts

C.

Lower capital requirements

D.

Easier access to capital markets

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Answer #1

Lower capital requirements

G-SIB generally have higher capital requirement due to their importance and risk in the economy.

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