Capital add-on

The provision of additional own funds by a bank to cover any risks, as ordered by the supervisory authority in the course of Basel II. – Under Solvency II, the order of the supervisory authority to provide additional own funds if the risk profile of an institution makes such a requirement appear appropriate. – Cf. BaFin Annual Report 2006, p. 52 (Europe-wide harmonization of capital surcharges).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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