risk-based capital requirement

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Evaluation of the capital adequacy of a financial institution according to the amount of risk attached to each type.One dollar in cash is much less risky than an unsecured promissory note for $1 from a con artist.Everything in between is a matter of degree.That is the premise that forms the basis of risk-based capital requirements.The Board of Governors of the Federal Reserve System sets the requirements for American financial institutions.This impacts the sizes and types of real estate loans financial institutions are willing to make.Internationally,the Basel II Accord provides guidelines for measuring risk when evaluating capital.

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RBC			MBA members are evaluating the guidance against the backdrop of pending implementation of Basel II and the bank regulators' consideration of increased risk-based capital requirements for commercial real estate construction lending, according to the comment letter. MBA urges consistency in proposed commercial lending guidance by Mortgage Banking The proposed revisions should more closely align risk-based capital requirements with the risk inherent in various exposures and could mitigate competitive inequalities that may arise as new capital rules, known as Basel II, are implemented for the most complex internationally active banking organizations. Proposed revisions to 1998 Basel Capital Accord (Basel I) by Federal Reserve Bulletin Under an optional federal chartering system, the financial stability of national insurers would be regulated by sound investment standards and risk-based capital requirements, ensuring that companies have adequate assets to pay claims. Singing the praises of a federal charter: the patchwork of state ... by Berrington, Craig A. / Risk & Insurance			Risk Factor Risk Graph Risk Hedge Risk Indexes Risk Lover risk management Risk Manager Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate Risk-Adjusted Performance Risk-adjusted profitability Risk-Adjusted Return Risk-Averse Risk-based capital ratio risk-based capital requirement Risk-Free Risk-Free Asset Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Risk-Loving Risk-Neutral Risk-Prone Risk-Return Trade-Off Risk-Return Tradeoff Risk-Reward Ratio Risk-Weighted Assets Riskless Arbitrage Riskless Investment Riskless or Risk-Free Asset Riskless Rate Riskless rate of return Riskless Transaction Risks and Opportunities Risky Asset Risky Operation Risparmiare Risque d'insolvabilite Risque de change			Risk-Adjusted Fair Value Risk-Adjusted Monitoring of Outcomes Risk-Adjusted Mortality Index Risk-Adjusted Mortality Rate Risk-adjusted Net Present Value Risk-Adjusted Operative Mortality Risk-adjusted performance Risk-Adjusted Performances Risk-adjusted profitability Risk-Adjusted Readmissions Index Risk-adjusted return Risk-Adjusted Return On Assets Risk-Adjusted Return On Capital Risk-Adjusted Return On Capital Risk-Adjusted Return on Risk-Adjusted Capital Risk-Adjusted Returns Risk-averse Risk-averse Risk-aversion Risk-aversion Risk-Based Acquisition Management Risk-Based Asset Management Risk-Based Assurance and Acceptance risk-based audit approach Risk-Based Audit Framework Risk-Based Capital Risk-based capital ratio risk-based capital requirement Risk-Based Compliance Monitoring Programme Risk-Based Corrective Action Risk-Based Decision Analysis Risk-Based Disposal Approval Risk-Based End States Risk-Based Exposure Limit Risk-Based Haircuts Risk-Based Inspection Risk-Based Inspection and Maintenance Risk-based Inspection Guide Risk-Based Inspection Planning Risk-Based Land Management Risk-Based Performance Standards Risk-based pricing Risk-Based Process Safety Risk-Based Quality Management Risk-Based Remediation Goal Risk-Based Tank Inspection Risk-based Testing risk-based work plan Risk-benefit analysis Risk-Capital Research and Technology Risk-factor Risk-factor Risk-factor risk-free risk-free

Financial Dictionary

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