Economic capital and Economic profit: Difference between pages

Latest revision as of 21:11, 29 October 2016

(EP).

The profit over and above the return which investors could have earned by investing elsewhere at the same level of risk.

Also known as supernormal profit.

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-''Banking - capital adequacy''.
+(EP).
-A bank's internal assessment of the amount of capital deemed necessary to support the risks to which it is exposed.
+The profit over and above the return which investors could have earned by investing elsewhere at the same level of risk.
+Also known as ''supernormal profit''.
 == See also ==
-* [[Capital adequacy]]
+* [[Economic capital]]
-* [[Economic profit]]
+* [[Normal profit]]
-* [[Pillar 1]]
-* [[Pillar 2]]
+[[Category:Corporate_finance]]
-* [[Pillar 3]]