Capital adequacy: Difference between revisions
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1. ''Bank regulation - capital requirements - Bank for International Settlements (BIS).'' | 1. ''Capital - capital requirements - supervision - regulation - financial services.'' | ||
Capital adequacy means minimum levels of regulatory capital for banks, insurance companies and certain other financial services firms. | |||
It is relevant for corporate treasurers in non-financial organisations, as the customers of banks and other financial services providers, affecting the pricing and appetite of the provider to provide the services the corporate treasury needs. | |||
2. ''Bank regulation - capital requirements - Bank for International Settlements (BIS).'' | |||
Capital adequacy is the system of regulating banks (and other financial institutions) by requiring them to maintain minimum acceptable levels - and types - of capital, adequate to absorb their potential credit losses and other trading losses. | Capital adequacy is the system of regulating banks (and other financial institutions) by requiring them to maintain minimum acceptable levels - and types - of capital, adequate to absorb their potential credit losses and other trading losses. | ||
Requirements are laid down internationally by the Bank for International Settlements (BIS) and | Requirements are laid down internationally by the Bank for International Settlements (BIS) and implemented and monitored by domestic central banks. | ||
Historically, the BIS capital adequacy standard had been 8%. | Historically, the BIS capital adequacy standard had been 8%. | ||
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3. ''Insurance & other contexts.'' | |||
Similar risk management and regulation in other contexts. | Similar risk management and regulation in other contexts. | ||
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* [[Basel 2.5]] | * [[Basel 2.5]] | ||
* [[Basel III]] | * [[Basel III]] | ||
* [[Basel III Endgame]] | |||
* [[Capital]] | * [[Capital]] | ||
* [[Capital Requirements Directive]] (CRD) | * [[Capital Requirements Directive]] (CRD) | ||
| Line 28: | Line 36: | ||
* [[Central bank]] | * [[Central bank]] | ||
* [[Common equity]] | * [[Common equity]] | ||
* [[Confidence]] | |||
* [[Corporate treasury]] | |||
* [[Countercyclical buffer]] | * [[Countercyclical buffer]] | ||
* [[Economic capital]] | * [[Economic capital]] | ||
| Line 39: | Line 49: | ||
* [[Microprudential]] | * [[Microprudential]] | ||
* [[Own funds]] | * [[Own funds]] | ||
* [[Pillar 1]] | * [[Pillar 1 - banking supervision]] | ||
* [[Pillar 2]] | * [[Pillar 2 - banking supervision]] | ||
* [[Pillar 3]] | * [[Pillar 3]] | ||
* [[Primary Loss Absorbing Capital]] | * [[Primary Loss Absorbing Capital]] | ||
| Line 50: | Line 60: | ||
* [[Solvency II]] | * [[Solvency II]] | ||
* [[Supervision]] | * [[Supervision]] | ||
* [[Treasury]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
Latest revision as of 02:47, 17 September 2024
1. Capital - capital requirements - supervision - regulation - financial services.
Capital adequacy means minimum levels of regulatory capital for banks, insurance companies and certain other financial services firms.
It is relevant for corporate treasurers in non-financial organisations, as the customers of banks and other financial services providers, affecting the pricing and appetite of the provider to provide the services the corporate treasury needs.
2. Bank regulation - capital requirements - Bank for International Settlements (BIS).
Capital adequacy is the system of regulating banks (and other financial institutions) by requiring them to maintain minimum acceptable levels - and types - of capital, adequate to absorb their potential credit losses and other trading losses.
Requirements are laid down internationally by the Bank for International Settlements (BIS) and implemented and monitored by domestic central banks.
Historically, the BIS capital adequacy standard had been 8%.
Under the Basel III framework this standard was increased (strengthened) substantially - very roughly doubled - and its measurement refined.
3. Insurance & other contexts.
Similar risk management and regulation in other contexts.
For example, insurance companies.
See also
- Bank for International Settlements (BIS)
- Basel II
- Basel 2.5
- Basel III
- Basel III Endgame
- Capital
- Capital Requirements Directive (CRD)
- Capital Requirements Regulation (CRR)
- Central bank
- Common equity
- Confidence
- Corporate treasury
- Countercyclical buffer
- Economic capital
- G-SIB
- GCLAC
- Insurance
- Insurance Capital Standard
- Interest Rate Risk in the Banking Book (IRRBB)
- Internal Capital Adequacy Assessment Process (ICAAP)
- IRB
- Microprudential
- Own funds
- Pillar 1 - banking supervision
- Pillar 2 - banking supervision
- Pillar 3
- Primary Loss Absorbing Capital
- Regulatory capital
- Reserve requirements
- Risk Weighted Assets (RWAs)
- Settlement risk
- Slotting
- Solvency II
- Supervision
- Treasury
