Unless otherwise defined, in the case of a bank this is the sum of common stock and retained earnings. Hard equity does not include securities whose holders are liable for losses only in the event of insolvency. – According to the Basel III plans, banks should hold at least three percent hard equity in relation to their total assets. This means that the balance sheet must not exceed 33 times equity. However, because total assets in the U.S. and Europe are not comparable due to different accounting rules (GAAP, IFRS), more detailed clarification is needed. – See asset reduction, capital buffer, countercyclical, core capital, core capital ratio, leverage ratio, liquidity crisis plan, liquidity buffer, forced convertible bond. – Cf. BaFin Annual Report 2009, p. 10 (Basel Committee discusses details of a future binding regulation), Deutsche Bundesbank Monthly Report of May 2013, p. 59 et seq. (hard capital in the wake of Basel III).
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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
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/
Passende Formel
Bilanzgleichung
Die grundlegende Gleichheit von Mittelverwendung und Mittelherkunft darstellen.
Variablen: Vermögen Aktiva; Eigenkapital und Fremdkapital Passiva.
Anwendung: Als Grundstruktur jeder Bilanz und doppelten Buchführung.