Capital Adequacy is a measure of a bank's or financial institution's capital to ensure it can absorb potential losses and safeguard depositors' funds.
Risk Weight is a term used in the context of financial regulations, representing the capital required to ensure a bank can absorb potential losses from different asset classes.
Risk-Weighted Asset (RWA) is the value of assets adjusted by their risk weight, used in banking to determine the minimum capital that financial institutions must hold.
Risk-Weighted Assets (RWA) are a critical measure used in banking to assess capital adequacy by assigning varying levels of risk to different asset classes.
Tier 1 Capital represents the core capital of a bank and is a primary indicator of its financial health. It includes equity capital and disclosed reserves.
An in-depth exploration of Tier 2 Capital, its significance in banking regulation, components, and its role in maintaining financial stability.
Tier Capital refers to different classes of bank capital, with Tier 1 being the core capital consisting of common equity and disclosed reserves.
A comprehensive overview of the Basel Accords, their purpose, development, amendments, and impact on global banking practices.
Explore the in-depth purpose, foundational pillars, historical context, and global implementation of the Basel Accords, essential agreements on banking regulations addressing capital, market, and operational risks.
Comprehensive guide on Risk-Based Capital Requirement including its definition, calculation method, capital tiers, and its significance in maintaining financial stability.
