Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Judith Yoo is a financial sector analyst writing an industry report. In the report, Yoo discusses the relative global systemic risk across industries, referencing Industry A (international property and casualty insurance), Industry B (credit unions), and Industry C (global commercial banks). Part of Yoo’s analysis focuses on Company XYZ, a global commercial bank, and its CAMELS rating, risk management practices, and performance. First, Yoo considers the firm’s capital adequacy as measured by the key capital ratios (common equity Tier 1 capital, total Tier 1 capital, and total capital) in Exhibit 1.
| Exhibit 1Company XYZ:Excerpt from AnnualReport Disclosure |
| At3l December | 2017 | 2016 | 2015 |
| Regulatory capital | $m | $m | $m |
| Common | eqquity | Tier | 1 | 146，424 | 142，367 | 137，100 |
| Add i ional Tier 1 capital | 22，639 | 20，443 | 17，600 |
| Tier 2 capital | 22，456 | 27，564 | 38，200 |
| Total regulatory capital | 191，519 | 190，374 | 192，900 |
| Risk-weighted assets(R WAs) by |
| risk type |
| Credt risk | 960，763 | 989，639 | 968，600 |
| Market risk | 44，100 | 36，910 | 49，600 |
| At3l December | 2017 | 2016 | 2015 |
| Regulatory capital | $m | $m | $m |
| Operational risk | 293，825 | 256，300 | 224，300 |
| Total R WAs | 1，298，688 | 1，282，849 | 1，242，500 |


Yoo turns her attention to Company XYZ’s asset quality using the information in Exhibit 2.
| Exhibit 2Company XYZ:Asset Composition |
| At3l December | 2017 | 2016 | 2015 |
| $m | $m | $m |
| Total liquid assets | 361，164 | 354，056 | 356，255 |
| Investments | 434，256 | 367，158 | 332，461 |
| Consumer loans | 456，957 | 450，576 | 447，493 |
| Commercial loans | 499，647 | 452，983 | 403，058 |
| Good wll | 26，693 | 26，529 | 25，705 |
| Other assets | 151，737 | 144，210 | 121，780 |
| Total assets | 1，930，454 | 1，795，512 | 1，686，752 |


To assess Company XYZ’s risk management practices, Yoo reviews the consumer loan credit quality profile in Exhibit 3 and the loan loss analysis in Exhibit 4.
| Exhibit 3Company XYZ:Consumer Loan Profile by Credit Quality |
| At3l December | 2017 | 2016 | 2015 |
| $m | $m | $m |
| Strong credt qualty | 338，948 | 327，345 | 320，340 |
| Good credt quality | 52，649 | 54，515 | 54，050 |
| Satisfactory credt quality | 51，124 | 55，311 | 56，409 |
| Substandard credt quality | 23，696 | 24，893 | 27，525 |
| Past due but not impaired | 2，823 | 2，314 | 2，058 |
| Impaired | 8，804 | 9，345 | 10，235 |
| Total gross amount | 478.044 | 473，723 | 470，617 |
| Imp aiment allowances | -5，500 | -4，500 | -4，000 |
| Total | 472.544 | 469.223 | 466.617 |



| Exhibit 4Company XYZ:Loan Loss Analysis Data |
| At3l December | 2017 | 2016 | 2015 |
| $m | $m | $m |
| Consumer loans |
| Allowance for loan losses | 11，000 | 11，500 | 13，000 |
| Provision for loan losses | 3，000 | 2，000 | 1，300 |
| Charge-offs | 3，759 | 3，643 | 4，007 |
| Recoveries | 1，299 | 1，138 | 1，106 |
| Net charge-offs | 2，460 | 2，505 | 2，901 |
| Commercial loans |
| Allowance for loan losses | 1，540 | 1，012 | 169 |
| Provision for loan losses | 1，100 | 442 | 95 |
| Charge-offs | 1，488 | 811 | 717 |
| Recoveries | 428 | 424 | 673 |
| Net charge-offs | 1，060 | 387 | 44 |


Finally, Yoo notes the following supplementary information from Company XYZ’s annual report:■ Competition in the commercial loan space has become increasingly fierce, lead- ing XYZ managers to pursue higher-risk strategies to increase market share.■ The net benefit plan obligation has steadily decreased during the last three years.■ Company XYZ awards above-average equity-based compensation to its top managers.
Based on Exhibit 4, a loan loss analysis for the last three years indicates that:
Option A:Company XYZ has become less conservative in its provisioning for con- sumer loans.
Option B:the provision for commercial loan losses has trailed the actual net charge-off experience.
Option C:the cushion between the allowance and the net commercial loan charge-offs has declined.

Answer: C