A case for convergence?

Bank capital

pg75-sregulation-gif

Economic capital was born about 15 years ago out of the desire to reflect risk in the decision-making processes of a bank. The two key questions an economic capital system was designed to answer were: how much shareholders' funds should the bank hold to achieve its desired credit rating, and how should the cost of capital be allocated to create appropriate risk-adjusted measures for strategic and tactical business decisions?

Basel II reflects these developments in banks by making regulatory

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here