Capital requirement, economic (model capital requirement)

When calculating risk, the result of backing all risks: the overall risk profile). – According to the minimum requirements for risk management, an institution that does not include material risks in the calculation of the economic capital requirement must justify this to the supervisory authority in a comprehensible manner. – See call risk, assets, illiquid, investment diversification, contagion effects, bank customer profile, Basel II, covenant, due diligence, emerging markets, function, internal ratings-based approach, internal capital adequacy assessment process, credit scoring process, loan securitization, liquidity risk, mark-to-model approach, minimum risk management requirements, liability management, procyclicality, rating agencies, risk department, risk cover assets, risk weighting, risk control, risk measurement procedures, risk assumption ground rule, risk and solvency assessment, proprietary, risk reporting, risk monitoring, articulated, scenarios, exceptional, loss event, warehousing risk. – Cf. Deutsche Bundesbank Monthly Report of December 2007, p. 59 f. (risks to be included in the calculation; limits in relation to future risks), p. 63 (overview), BaFin Annual Report 2011, p. 63 ff. (efforts to achieve EU-wide harmonization in the course of Basel III; timetable).

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/