regulatory-capital

Learning Objectives: Explain the distinctions between economic capital and regulatory capital and describe how economic capital is derived. Describe the degree of dependence typically observed among the loan defaults in a bank’s loan portfolio and explain the implications for the portfolio’s...

Learning Objectives: Describe the different categories of operational risk and explain how each type of risk can arise. Compare the basic indicator approach, the standardized approach, and the advanced measurement approach for calculating operational risk regulatory capital. Describe the...

Learning outcomes: Identify the major risks faced by banks and explain ways in which these risks can arise. Distinguish between economic capital and regulatory capital. Summarize the Basel Committee regulations for regulatory capital and their motivations. Explain how deposit insurance gives...

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