Bank capital is complex, so here is my blog.
Banks are important, and even more important is bank capital. It is the most important tool that a bank can use to manage its business. Bank capital is undergoing changes. Gone are the days of capital ratio’s that were close to zero. Today’s new rules require banks to hold more capital. The question is how much capital should a bank need and how should it be structured.
The bad news on bank capital is that there is no Capital for Dummies book. But that should not discourage you. All the information about bank capital is public. See the column to the left in my blog. I try to order the links in such a way that you will find your way through these documents.
This blog is there to assist those who decide and discuss capital issues. It is written by a capital specialist formerly working at a central bank. Cetier contributed directly to
Basel III capital definition and disclosure rules, and the European implementation of the Basel III capital parts. He assisted Systemically Important Banks with capital transactions for over $15bn.
Enjoy, and feel free to contribute.
Cetier the First (email@example.com)