Capital adequacy: Difference between revisions
imported>Doug Williamson m (Add headers.) |
imported>Doug Williamson (Update.) |
||
| Line 1: | Line 1: | ||
1. ''Bank regulation - capital requirements.'' | 1. ''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 implented 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. | |||
2. ''Insurance & other contexts.'' | |||
Similar risk management and regulation in other contexts. | |||
For example, insurance companies. | |||
| Line 23: | Line 28: | ||
* [[Countercyclical buffer]] | * [[Countercyclical buffer]] | ||
* [[Economic capital]] | * [[Economic capital]] | ||
* [[G-SIB]] | |||
* [[Insurance]] | |||
* [[IRB]] | * [[IRB]] | ||
* [[IRRBB]] | * [[IRRBB]] | ||
Revision as of 15:49, 18 March 2021
1. 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 implented 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.
2. Insurance & other contexts.
Similar risk management and regulation in other contexts.
For example, insurance companies.
See also
- Bank for International Settlements
- Basel II
- Basel 2.5
- Basel III
- Capital Adequacy Directive
- Capital Requirements Directive
- Common equity
- Countercyclical buffer
- Economic capital
- G-SIB
- Insurance
- IRB
- IRRBB
- GCLAC
- ICAAP
- Microprudential
- Pillar 1
- Pillar 2
- Pillar 3
- Primary Loss Absorbing Capital
- Regulatory capital
- Reserve requirements
- RWAs
- Settlement risk
- Slotting
