Regulating Market Risk in Banks : The Options
Regulators concerned about the costs of bank insolvency and of systemic risk arising from the volatility of bank trading portfolios have developed three different approaches to setting risk-based minimum capital adequacy standards for market risk....
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1996/12/693111/regulating-market-risk-banks-options http://hdl.handle.net/10986/11602 |
| Summary: | Regulators concerned about the costs of
bank insolvency and of systemic risk arising from the
volatility of bank trading portfolios have developed three
different approaches to setting risk-based minimum capital
adequacy standards for market risk. The author evaluates
those three approaches--building blocs, internal models, and
precommitment--and assesses their possible implications for
bank capital, competition, and pricing decisions. |
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