The data in Figure 1 show that a number of banks that are classified as we 11-capitalized by current PCA standards would be under-capitalized
under the proposed new NACR PCA standard.
In summary, we find that univariate tests show larger loan portfolios for under-capitalized
banks and for banks falling in the post-crisis period, while L2 and L3 fair value assets are larger in the well- and adequately-capitalized banks subsample and in the post-crisis period.
For example, distributor customers that were reasonably capitalized during this period hung on while small and under-capitalized
customers either sold their businesses or closed their doors.
If you fall to critically under-capitalized
in that scenario, begin making changes now.
Basically, the GAO said they were all under-capitalized
and had to raise their rates to maintain financial health.
We also saw the advent of purchasing and risk retention groups, many of whom are under-capitalized
and are "just get rich quick" schemes.
Even $2 billion in payouts could be optimistic, as the Insurance Information Institute (III) says the Philippines is home to "dozens of tiny and under-capitalized
For businesses, Facebook is a vast space where thousands of potential prospects are gathered, yet advertising on this site remains under-used and under-capitalized
If shocks are idiosyncratic to a bank, then the under-capitalized
banks can be acquired, or their activities re-intermediated, by better-capitalized banks.
China's defense complex is over-ideologized, under-capitalized
, technologically outdated and innovation-inert, while the US' is largely privatized, highly efficient, deployable and prime innovative.
While ministry sources said Indian carriers are under-capitalized
and could do well with foreign airlines' funds and expertise, Adecision could be some time away.
So the impact of new regulations on countries where banks are significantly under-capitalized
could easily be four or five times larger than the headline figure - say, in the vicinity of a percentage point at a four-year horizon.