Regulatory capital and Risk mitigation: Difference between pages

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1. ''Bank supervision - capital adequacy''
The use of techniques to reduce the likelihood or the potential size of adverse effects on the organisation. (But without avoiding or transferring the risk entirely.)


Items of capital and types of capital instrument which are eligible for inclusion in the calculation of a bank's capital resources for regulatory purposes.
For example, requiring collateral from borrowers in order to mitigate credit risk.
 
 
2. ''Bank supervision - capital adequacy''
 
The minimum level of capital required by the regulator, as defined by the inclusion of eligible capital items only.
 
 
3.
 
Similar measures for other regulated entities.




== See also ==
== See also ==
* [[Bank supervision]]
* [[Collateral]]
* [[Capital]]
* [[Credit risk]]
* [[Capital adequacy]]
* [[First line of defence]]
* [[Economic capital]]
* [[Regulatory]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_risk_management]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 09:42, 5 August 2015

The use of techniques to reduce the likelihood or the potential size of adverse effects on the organisation. (But without avoiding or transferring the risk entirely.)

For example, requiring collateral from borrowers in order to mitigate credit risk.


See also