By Imad A. Moosa
Read Online or Download Quantification of Operational Risk under Basel II PDF
Similar economy books
Broadening and deepening of monetary and political integration are hallmarks of the ecu and ASEAN. This booklet significantly analyses the commercial and institutional adjustments in either Europe and Asia. there's enormous strength for instability, yet one additionally unearths nearby development possibilities. Comparative coverage research and evaluate of assorted cooperation techniques are provided.
"When will i am getting it? How a lot will it fee? "For the buyer, those are the 2 most crucial questions. expense making plans solutions those questions and is essential to the group engaged on the layout and development of a undertaking. This introductory textual content on construction economics and price making plans presents the reader with the elemental talents and data to function as a development specialist within the quarter of monetary suggestion and choice making on the venture point.
This electronic rfile is a magazine article from magazine of monetary Economics, released via Elsevier in 2004. the item is added in HTML layout and comes in your Amazon. com Media Library instantly after buy. you could view it with any net browser.
We learn insider buying and selling in professional and broker markets, utilizing the trades of inventory agents who had improve copies of a inventory research column in company Week journal. we discover that raises in cost and quantity happen after knowledgeable trades. in the course of educated buying and selling, marketplace makers lessen intensity. intensity falls extra at the NYSE and Amex than at the Nasdaq. Spreads elevate at the NYSE and Amex, yet now not at the Nasdaq. we discover none of those pre-release adjustments in a nontraded keep an eye on pattern of shares pointed out within the column. Our effects convey that insider buying and selling has a unfavorable impression on marketplace liquidity; intensity is a crucial device to regulate uneven info chance; and professional markets are higher at detecting expert trades.
- Management in Transitional Economies: From the Berlin Wall to the Great Wall of China.
- Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance
- International Investment Perspectives 2004
- IP Telephony: Deploying VoIP Protocols and IMS Infrastructure, Second Edition
Additional info for Quantification of Operational Risk under Basel II
By attempting to avoid systemic risk (which arises from the effect of the failure of a single bank on the whole banking sector, the financial sector and the economy at large) in the name of creditors and investors, they end up making the financial system more unstable. Lack of profitability, he argues, represents a supervisory problem even if the underlying bank is compliant with the capital adequacy requirements and has the most sophisticated risk measurement models. Indeed he argues that “sustained, sound and diversified profitability is THE precondition for protecting creditors and avoiding systemic risks” Survival, the argument goes, is not only about capital, compliance and controls, it is also about performance.
It is, therefore, defined as the minimum amount of capital that regulators require a bank to hold. Under Basel I and Basel II, banks are required to maintain a minimum capital ratio of 8% of risk-weighted assets. de Fontnouvelle et al (2005b) point out that while Basel II retains the minimum regulatory capital concept of Basel I, the former employs principles of economic capital to make the minimum regulatory capital measure more risk-sensitive. Economic capital and regulatory capital are bound to differ, perhaps significantly, unless the regulator agrees to make regulatory capital equal to economic capital as determined by internal models.
The most recent reminder of the validity of this proposition is the failure of Northern Rock in September 2007, which has created a lot of problems for the British government and cost the tax payers billions of pounds. The collapse of the banking system in Argentina earlier this century resulted not only in economic collapse but also in civil unrest. Three issues are discussed in this section: (i) why banks are important; (ii) the justification for banking regulation; and (iii) regulatory functions.
Quantification of Operational Risk under Basel II by Imad A. Moosa