Bank regulation involves the application of public controls stricter than those on other businesses, justified by concerns that bank failures may disrupt the economy more severely than other business failures.
The Basel Agreement established international risk-based capital adequacy standards for banks, ensuring a level playing field in global banking and enhancing financial stability.
The Capital Ratio is the ratio of the capital of a bank to its risk-weighted assets, used by regulatory agencies to assess the bank's resilience to losses and compliance with regulations, defined primarily by the Basel Agreements.
An in-depth look at the minimum capital required for banks and financial services institutions by regulatory bodies, with a focus on definitions, historical context, types, and implications for the financial industry.
