Regulatory capital: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
Line 1: Line 1:
A requirement imposed by regulation, usually on {{tag|bank}}s and like {{tag|financial institution}}s to hold a certain amount of [[shareholder equity]] by reference to the [[asset]]s and [[liability|liabilities]] on their [[balance sheet]]s.
A requirement imposed by regulation, usually on {{tag|bank}}s and like {{tag|financial institution}}s to hold a certain amount of [[shareholder equity]] — called {{tag|regulatgory capital}} — by reference to the [[asset]]s and [[liability|liabilities]] on their [[balance sheet]]s. Hence the interest all such entities have in being as efficient as they can be in the usage of balance sheet.
 
==See also===


===See also===
**[[capital ratio]]
*{{tag|CRD IV}}
*{{tag|CRD IV}}
*{{tag|Netting}}
*{{tag|Netting}}


{{bipruanatomy}}
{{bipruanatomy}}

Revision as of 15:57, 16 September 2016

A requirement imposed by regulation, usually on banks and like financial institutions to hold a certain amount of shareholder equity — called regulatgory capital — by reference to the assets and liabilities on their balance sheets. Hence the interest all such entities have in being as efficient as they can be in the usage of balance sheet.

See also

Regulatory Capital Anatomy™
The JC’s untutored thoughts on how bank capital works.

{{{2}}}

Tell me more
Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.