Organising the allocation

Capital allocation is an important quantitative methodology that affects a bank’s risk-taking behaviours and business strategies. Yadong Li, Marco Naldi, Jeffrey Nisen and Yixi Shi propose a new capital allocation method that offers stability, fairness, computational efficiency and better business incentives, when compared with existing methods



In the wake of the financial crisis of 2008, regulators around the globe started to strengthen regulatory capital requirements, aiming to limit systemic risk by reining in the aggressive risk-taking behaviours of banks. Under the tightened regulations, banks are required to raise more capital than in the precrisis era to support similar business activities. In response to the growing regulatory capital pressure, banks are aggressively repositioning themselves by

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options

You need to sign in to use this feature. If you don’t have a 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