Regulatory Capital of Financial Institutions: A Comparative Analysis

摘要: This study analyzes regulatory capital requirements of banks, thrifts and securities firms. Regulatory has traditionally guarded against credit risk been set on an asset-by-asset basis. Regulators now recognize the need to guard a wider range risks measure in portfolio context rather than However, measurement presence wide variety financial instruments complexity institutions requires level sophistication that regulators are unlikely possess. Consequently, it is important reassess purpose captial. guards failure entire institution, while responsibility extends only insurance fund guarantees bank deposits or brokerage accounts. Narrowing focus protect insured accounts would reduce consider all activities instituion as necessary order establish capital.