NO.PZ2024032003000017
问题如下:
Which of the following statements about the advantages of the Proposed CoCo Design is incorrect?
选项:
A.
Reducing legal risks
B.
Strengthened regulatory intervention
C.
Countercyclical Capital Flexibility
D.
Easier to understand and price using standard financial models
解释:
Advantages of Proposed CoCo Design:(1) Simplicity and Predictability: Easier to understand and price using standard financial models, reducing market uncertainty.(2) Countercyclical Capital Flexibility: Offers banks the option to raise capital during crises without regulatory intervention, acting as a form of countercyclical buffer.(3) Removal of Regulatory Conversion Decision: Eliminates the need for regulator involvement in conversion decisions, potentially reducing legal risks.
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