Abstract
During the last three or four years international bankers have been calling on the Basle Committee on Banking Supervision to change its formula for calculating how much capital institutions need to hold as a cushion against credit risk. According to the 1998 Capital Accord banks are required to hold capital equivalent to 8 per cent of their assets, with some less risky assets such as mortgages and sovereign loans (see Chapter 15) carrying a reduced risk-weighting.
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© 2000 Dimitris N. Chorafas
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Chorafas, D.N. (2000). Rethinking and Revamping the 1998 Capital Accord : A New Capital Adequacy Framework. In: New Regulation of the Financial Industry. Palgrave Macmillan, London. https://doi.org/10.1057/9780333977439_11
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DOI: https://doi.org/10.1057/9780333977439_11
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-41676-9
Online ISBN: 978-0-333-97743-9
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)