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 1, Company XYZ’s capital adequacy over the last three years, as measured by the three key capital ratios, signals conditions that are:
Option A:mixed.
Option B:declining.
Option C:improving.

Answer: A