Recognizing this problem, the Basel Committee has now introduced a simple, non-risk based leverage ratio to supplement the risk-based capital requirement
that captures risks arising from total assets, he observed.
100% reduction in the risk-based capital requirement
for toxic assets.
banks cast serious doubt on the credibility of the measure computed from the combination of a banks' own individual risk models for probability of default and loss given default and the regulators' model for computing the associated risk-based capital requirement
Finally, since the requirements do not cover the full range of risks facing insurance firms, supervisors typically expect insurers to maintain multiples of the minimum risk-based capital requirement
A risk-based capital requirement
of 8% of risk-weighted assets.
As of March 31, 2002, Fannie Mae's risk-based capital requirement
Credit ratings from rating agencies and certain limited alternative-credit-rating approaches are used to match more closely the risk-based capital requirement
for these banking organizations to their relative risk of loss for certain positions in asset securitizations.
13, 2001) and the time OFHEO may classify an enterprise based on its risk-based capital requirement
Credit ratings from rating agencies and certain limited alternative credit-rating approaches can be used by banks to match the risk-based capital requirement
more closely to their relative risk of loss for certain positions in asset securitizations.
With stability of cash flow comes a reduction in risk-based capital requirement
Third, the Health Organization Risk-Based Capital requirements
introduced by NAIC are not expected to apply to life insurance companies that sell health insurance products, meaning that a product sold by a managed care organization could have a lower risk-based capital requirement
than the same product sold by a life insurance company.
Since the NCUA first put the risk-based capital requirement
in place over a decade ago, it has not been updated.