Capital requirement

regulatory capital is the minimum amount of capital that the financial regulator required the banks or the financial institutions to hold (Elizalde & Repullo, n.d.). It is used to help to avoid to risk and reduce the losses that we may have but can’t forecast. ("Bank Regulatory Capital – Quick Reference", 2016). The figure of the financial capital is directly set by the financial regulators. The balance sheet capital is the equity part that we recorded on the balance sheet. The regulatory capital is like

Supervision agreed to new rules on the minimum level (capital ratio) and composite structure of Banks capital on the 12th of September, 2010. Broadly speaking, the new rules which are widely referred to as Basel III (and are mainly Basel II plus new regulations based on lessons from the market crisis), still stipulate a minimum Total Capital Ratio of 8%. However, in addition to increasing the portion of the 8% requirement that is Core Tier 1 Capital (from 2% to

ICAAP IFRS IRB LGD N NI NPL NPLR PD P-value R2 ROA ROE RORAC RWA SFSA Signif. TL TSE Adjusted R-squared Basel Committee on Banking Supervision Capital Adequacy Ratio Credit Conversion Factors Coefficient Capital Requirements Directives Foundation Internal Rating-based Financial Supervisory Authority Internal Capital Adequacy Assessment Process International Financial Reporting Standards Internal Rating-based Loss Given Default Number (of Observations) Net Income Non-performing

Unexpected loss, along with any unmitigated expected loss, is covered by capital. Additionally, aside from the economic capital associated with unexpected loss, there are regulatory capital requirements. This capital is left out of the ROA metric. This is true at the entity level and for any line-of-business performance measures internally. Since ROE uses shareholder equity as its divisor, and the equity is risk-based capital, the result is, more or less, automatically risk-adjusted. In addition to

approval. ABN AMRO and DNB agreed that ABN AMRO would continue to report capital on the basis of Basel I which included minimum ratio of 9% for tier 1 and for total capital it was 12.5%. The risk associated with the fact that ABN AMRO had not received IRB approval yet. In 2008 there were internal FSA discussions related to RBS’s first quarter reporting approach and the approach finally by the FSA to calculate capital requirements based on Basel IRWAs with an uplift of 30%, ABN AMRO will continued to

the last few years just how important is liquidity to the survival and well-being of Financial Institutions? Some believe it has a greater influence on events than Capital! Discuss. (In this assignment you need to outline the role of liquidity, issues arising when liquidity is scarce and compare the role of liquidity to that of Capital but most importantly give your own view on these matters) Role of Liquidity Liquidity can be defined as 1) the ability of a business to meet obligations without

Chapter I INTRODUCTION 1.1 Case Background Managing a Bank crisis is one of the most difficult tasks of a regulator. Banks and financial institutions had to take counter measures in order to survive and remain competitive. Efficient regulatory framework identifies the benefits of a sustainable financial system. It helps the organizations to work efficiently, objectively and the country will have transparent markets. Regulatory system is open minded to the needs of investors when implementing directions

CBoP shareholders will get one share of HDFC Bank for every 29shares held by them.HDFC Bank and Centurion Bank of Punjab have agreed to the biggest merger inIndian banking history, valued at about $2.4 billion. Rana Talwar's Sabre Capital would holdless than 1 per cent stake in the merged entity from 3.48 in CBoP, while Bank Muscat's holding will decline to less than 4 per cent from over 14 per cent in CBoP.HDFC shareholding falls to will fall from 23.28 per cent to around 19 per cent

S w 910N29 BASEL III: AN EVALUATION OF NEW BANKING REGULATIONS1 David Blaylock wrote this case under the supervision of David Conklin solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of

SECTOR OVERVIEW 1 Introduction: Banking sector The Indian Banking industry governed by the Banking Regulation Act of India, 1949, falling into two broad classifications, non-scheduled banks and scheduled banks. Within the commercial banks there are nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). With the economic growth picking up pace and the investment cycle on the way to recovery, the banking