Beruflich Dokumente
Kultur Dokumente
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Key Topics
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Introduction
What is capital?
Funds contributed by the owners of a financial institution
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Bank Management and Financial
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Credit Risk
Liquidity Risk
Interest Rate Risk
Operational Risk
Exchange Risk
Crime Risk
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Bank Management and Financial
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Deposit Insurance
Owners Capital
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Bank Management and Financial
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Common stock
Preferred stock
Surplus
Undivided profits
Equity reserves
Subordinated debentures
Minority interest in consolidated subsidiaries
Equity commitment notes
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Basel I
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Bank Management and Financial
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Each asset item on a banks balance sheet and each offbalance-sheet commitment it has made are multiplied by a
risk-weighting factor
Designed to reflect its credit risk exposure
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Promote backtesting
Even if an individual bank is a good forecaster, there may
still be trouble due to systemic risk
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Bank Management and Financial
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Quick Quiz
What crucial roles does capital play in the management and
viability of a financial firm?
What are the most important and least important forms of
capital held by U.S.-insured banks?
What is the rationale for having the government set capital
standards for financial institutions as opposed to letting the
private marketplace set those standards?
How is the Basel Agreement likely to affect a banks choices
among assets it would like to acquire?
What are the differences among Basel I, II, and III?
What are the principal sources of external capital for a financial
institution?
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