The role of capital requirements in ensuring capital adequacy

Term Paper , 2016 , 11 Pages

Business economics - Investment and Finance

In this paper, the impact of higher capital requirements to the capital adequacy of banks as well as its consequences to the financial system will be discussed. Therefore, these terms will be explained and an overview of the developed guidelines will be given. With the help of that knowledge, the actual challenges for financial institutions can be set in relation to these rules in order to find an appropriate level of banking regulation. This topic has a special meaning to society, because the banking sector is highly leveraged and can cause great economic damage if there is a lack of sufficient risk management.

1 Introduction

2 Capital adequacy and capital requirements

3 The Basel frameworks and the components of capital

4 The role and consequences of capital requirements

5 Conclusion

6 References

• College: School of Oriental and African Studies, University of London
• Course: Bank Financial Management
• Author: Arno Hetzel (Author)
• Publication Year: 2016
• Pages: 11
• Catalog Number: V379748
• ISBN (eBook): 9783668587946
• ISBN (Book): 9783668587953
• Language: German