What change did NOT contribute to the increase in RAROC in response to the improved risk rating for Atlas?

The increase in Risk-Adjusted Return on Capital (RAROC) measures how efficiently a bank is generating returns relative to the risk taken and the capital required. A decrease in the capital requirement can lead to an increase in RAROC because it lowers the denominator in the RAROC formula, thereby increasing the ratio if the numerator (return) remains stable or increases.

However, in this scenario, the question asks for the change that did NOT contribute to the increase in RAROC in response to the improved risk rating for Atlas. The answer indicates that a decrease in capital requirements is not linked to a direct increase in RAROC from the context of improved risk ratings for Atlas.

Increased revenue, decreased operating expenses, and higher loan amounts all would work to enhance RAROC by either increasing the returns or reducing the costs associated with generating those returns. An increase in revenue directly boosts returns, decreased operating expenses enhances net income, and increased loan amounts can contribute to greater interest income, which also raises returns.

Thus, while a decrease in capital might typically increase RAROC, in this specific question concerning the context of improved risk ratings, it is indicated that it did not directly contribute to that increase, making it the correct choice.