Requirement:

Critically review how the tensions between these two objectives can be resolved showing how banks can attempt to maximise their profits whilst operating under these regulatory constraints

Your conclusions should be based on evidence you have reviewed and you may draw upon relevant theories and ideas and where appropriate use analysis, arguments and justification by using examples and illustrations. In answering this question, you should not only refer to material you have in Themes 3 and 4 in the study materials but you should also look at additional journal articles, trade association publications, and annual reports, showing us that you can conduct relevant and independent research. An in-depth knowledge of Basle 3 is not expected but you might want to refer to it in your answer.

Key descriptors:

Critical evaluation – here you must provide your verdict on the issues and draw conclusions as to what extent a statement or findings within a piece of research are true, or to what extent you agree with them. You must provide evidence from a number of sources which both agree and disagree with the argument presented. You are also required to produce a final conclusion based on your decision on what you think to be the important factors and then justifying how you have made your choice.

Review – this involves you thoroughly looking into a subject. There should be a critical assessment and not just a descriptive review.

Analyse – break an issue into constituent parts and fully discuss these parts.