Capital adequacy and Rate regulation: Difference between pages

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1.  
A framework for establishing the prices that can be charged to customers for goods and services. This framework is subject to oversight and/or approval by a rate-regulator.
The system of regulating banks (and other financial institutions) by requiring them to maintain minimum acceptable levels of capital, adequate to absorb their potential credit losses and other trading losses.


2.
For example, many governments regulate the supply and pricing of particular types of activity by private entities, including utilities such as gas, electricity and water.
The current minimum amount of risk weighted capital that banks are required to maintain in proportion to the risk assets that they assume, normally used in connection with the requirements laid down internationally by the Bank for International Settlements (BIS) and monitored by domestic central banks.  


Historically the BIS standard has been 8%.


Under Basel III this standard will be increased (strengthened) substantially - very roughly doubled - and its measurement will be refined.
==See also==
 
* [[IFRS 14]]
== See also ==
* [[Bank for International Settlements]]
* [[Basel II]]
* [[Basel III]]
* [[Capital Adequacy Directive]]
* [[Capital Requirements Directive]]
* [[Settlement risk]]
* [[Slotting]]

Revision as of 14:08, 17 January 2015

A framework for establishing the prices that can be charged to customers for goods and services. This framework is subject to oversight and/or approval by a rate-regulator.

For example, many governments regulate the supply and pricing of particular types of activity by private entities, including utilities such as gas, electricity and water.


See also

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