Show simple item record

dc.contributor.authorVan Laere, Elisabeth
dc.contributor.authorBaesens, Bart
dc.contributor.authorThibeault, André
dc.date.accessioned2017-12-02T14:24:46Z
dc.date.available2017-12-02T14:24:46Z
dc.date.issued2007
dc.identifier.urihttp://hdl.handle.net/20.500.12127/2706
dc.description.abstractIn order to promote financial stability, regulatory authorities pay a lot of attention in setting minimum capital levels. In addition to these requirements, financial institutions calculate their own economic capital reflecting the unexpected losses and true risk according to the specific characteristics of their portfolio. The current Basel I framework pays little or no attention to the creditworthiness of a borrower in deciding on the regulatory capital requirements. As a result, a lot of banks remove low-risk assets from their balance sheets and only retain relatively high risk assets on balance. The recently introduced Basel II framework should result in a further convergence between regulatory and economic capital. However, recent papers (Elizalde et al., 2006, Jackson et al., 2002 and Jacobson et al. 2006) argue that also under Basel II, regulatory and economic capital will have different determinants. This paper first gives an overview of capital adequacy and then further describes the differences and similarities between economic and regulatory capital based on a literature review.
dc.language.isoen
dc.titleBank capital: a myth resolved
refterms.dateFOA2019-10-14T12:44:42Z
dc.source.issue35
dc.source.numberofpages26
vlerick.supervisor
vlerick.typecommWorking paper
vlerick.vlerickdepartmentA&F
dc.relation.urlhttp://public.vlerick.com/Publications/bd9ce564-6aa9-e011-8a89-005056a635ed.pdf
dc.identifier.vperid94350
dc.identifier.vperid69124
dc.identifier.vperid67811
dc.identifier.vpubid3022


Files in this item

Thumbnail
Name:
Van_Laere_E_BankCapitalaMythRe ...
Size:
149.6Kb
Format:
PDF

This item appears in the following Collection(s)

Show simple item record