LAS BANK Plc

The financial press has recently indicated that there is an increased likelihood that Germany will experience a severe economic recession as well as a liquidity crisis following the COVID-19 pandemic. LAS Bank’s senior management team are concerned that this will detrimentally affect the bank’s liquidity and profitability and could potentially lead it to requiring a bail-out from the European Central Bank. As LAS Bank’s Chief Risk Officer, you have been asked to prepare a report on the bank’s ability to meet the requirements of the Basel III framework, which will be submitted to the bank’s Board of Directors. In particular, the Board wishes to know the state of the bank’s capital reserves as well as whether it is able to meet its requirements under the Basel III framework since they have a fiduciary duty to notify regulators should these be deemed to be insufficient and identify how they intend to address any shortcomings.