Hi David,
I tried to search this on forum but couldn't find anything on this...In Spreadsheet T7.C.1 Capital adequacy...question is about Market risk calc.
I understand Tier 1 and Tier 2 (no more than 100% of T1) could divide capital charge 50% but what i don't understand
- Is Market Risk Tier 3 always limited to max 250% of Tier 1?
- Why did you put only 100 for Market Risk Tier 1 where you could have used more for market and less for operational and similarly increasing usage of Tier 3 as well...
- Is it that for greater RWA you use more, so first you focused on maximizing Credit and op and then market?
whats the rational in selecting tier capital?
Could you pls advise.
Attaching spreadsheet for your quick review.
Thanks!
Ankur
I tried to search this on forum but couldn't find anything on this...In Spreadsheet T7.C.1 Capital adequacy...question is about Market risk calc.
I understand Tier 1 and Tier 2 (no more than 100% of T1) could divide capital charge 50% but what i don't understand
- Is Market Risk Tier 3 always limited to max 250% of Tier 1?
- Why did you put only 100 for Market Risk Tier 1 where you could have used more for market and less for operational and similarly increasing usage of Tier 3 as well...
- Is it that for greater RWA you use more, so first you focused on maximizing Credit and op and then market?
whats the rational in selecting tier capital?
Could you pls advise.
Attaching spreadsheet for your quick review.
Thanks!
Ankur
