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Basic Question 4 of 12

A bank is considered to be very safe if it has a large amount of:

I. risk-weighted assets
II. Tier-1 capital
III. Tier-2 capital

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

explain the CAMELS (capital adequacy, asset quality, management, earnings, liquidity, and sensitivity) approach to analyzing a bank, including key ratios and its limitations;

analyze a bank based on financial statements and other factors;

CFA® 2025 Level II Curriculum, Volume 2, Module 13.