Examples of activities-based criteria could be those that place limitations on securities and derivatives trading in which the bank engages.44Trading assets and liabilities are generally financial instruments that a bank underwrites and deals in, has positions in for the purpose of selling in the n...
Intuitively, this utility function is a sliding scale between S and 𝑄𝑢, and a patient’s preference would dictate where he/she would fall. Let the overall outcome of interest that we would like to optimize be 𝑅𝑖1+𝑅𝑖2, where 𝑅𝑖𝑗=𝑄𝑢𝑖𝑗+{1−Φ(ℎ𝑖...