Capital adequacy and Term debt: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Update from current to prevailing.)
 
imported>Doug Williamson
(Created page with "Term debt is debt which has an agreed term or maturity. Normally the term when the debt is drawn down would be greater than one year. == See also == *Debt *Term loan ")
 
Line 1: Line 1:
1.
Term debt is debt which has an agreed term or maturity.
 
Normally the term when the debt is drawn down would be greater than one year.
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.
 
The prevailing 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 ==
== See also ==
* [[Bank for International Settlements]]
*[[Debt]]
* [[Basel II]]
*[[Term loan]]
* [[Basel III]]
* [[Capital Adequacy Directive]]
* [[Capital Requirements Directive]]
* [[Countercyclical buffer]]
* [[PLAC]]
* [[GCLAC]]
* [[Microprudential]]
* [[Settlement risk]]
* [[Slotting]]
 
[[Category:Compliance_and_audit]]

Revision as of 11:53, 30 May 2015

Term debt is debt which has an agreed term or maturity. Normally the term when the debt is drawn down would be greater than one year.

See also