Description

The impact that regulatory changes have had on the amount of capital that banks have to hold in relation to the risks they face. The range of different capital requirements banks have to comply under Basel rules.

Learning Objectives

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1. Recall why banks have to hold regulatory capital.
2. Determine the impact of regulatory changes on the amount of capital banks must hold in relation to the risks they face.
3. Identify the features and uses of the capital requirements ratio.
4. Identify the features and uses of the risk-weighted assets.
5. Identify the features and uses of qualifying capital.
6. Identify the features and uses of G-SIBs.
7. Identify the features and uses of the countercyclical capital buffer.
8. Identify the features and uses of leverage-based capital requirements.