Banks are complex. They are important too. This blog focuses on one of the most potent tools that a bank has to its avail: its capital. Bank capital, or regulatory capital, is undergoing changes. Gone are the days of low 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.
The bad news on bank capital is that there is no Capital for Dummies book.
The good news is that 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. Written by a capital specialist formerly working at a central bank who contributed directly to Basel III capital definition and disclosure rules, and the European implementation of the Basel III capital parts. Assisted Systemically Important Banks with capital transactions for over $15bn.
Enjoy, and feel free to contribute.
Cetier the First (email@example.com)