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IV. Opposites and Synonyms.

For each of the following words you are asked to provide a synonym and another word which is opposite in meaning:

Synonym

Opposite

legal

framework

power

flexible

to cover

effective

to provide

seldom

overall

to carry out

VII. Join the halves.

On the left there are eleven halves of the sentences. On the right there are the other halves of the sentences, though not in the same order. Pair the halves and write your own list of complete sentences.

  1. While there is no perfect system of ensuring that banks remain safe and sound at all times …

  1. initial capital requirements and on-going capital requirements, usually expressed as a ratio.

  1. It can be argued that the most important power for a supervisory authority is …

  1. it is measured against the total of risk weightings both on and off the balance sheet.

  1. The more specific the criteria, …

  1. is a major area which prudential regulation should address.

  1. As capital can be quantitatively measured, the framework should give minimum or …

  1. where very large concentrations of credit can weaken a bank or even lead to its failure.

  1. Prudential regulation must be fairly and consistently imposed, …

  1. the power to license.

  1. Asset diversification is based simply on preventing “too many eggs in one basket”, …

  1. the supervisory authority must have the power to deal with problem banks as they arise.

  1. The treatment of problem assets, often called non-performing assets, …

  1. which has been earned on a loan but has not been collected.

  1. Instead of capital being measured against total assets, …

  1. prudential regulation, if well designed and properly enforced, can help prevent or at least limit the damage to a bank caused by poor management.

  1. In order to ensure prudential regulation is effective, …

  1. the Basle committee of bank supervisors agreed to a risk-based capital method that includes valid concepts for any country wishing to modernize its capital requirements for banks.

  1. Many banks declare profits, which are misleading or even fictitious, by accruing into income interest …

  1. the easier it is for a supervisory authority to determine the fitness of an applicant for a license.

  1. In the attempt to find a prudential requirement for capital that took risk into account and established a standard for major financial centers, …

  1. to create a fair marketplace and a “level playing field” for competition between banks.