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	Capital requirement - Wikipedia, the free encyclopedia
		The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital.
		Each national regulator normally has a differing way of calculating bank capital, to meet their own requirements and legal framework, but the international standards of bank capital were laid down in the 1988 Basel I accord and have been little changed since.
		These guidelines are used to evaluate capital adequacy based primarily on the perceived credit risk associated with balance sheet assets, as well as certain off-balance sheet exposures such as unfunded loan commitments, letters of credit, and derivatives and foreign exchange contracts.
	en.wikipedia.org /wiki/Capital_requirement (1088 words)

	Tier 2 capital - Wikipedia, the free encyclopedia
		Tier 2 capital is a measure of a bank's financial strength with regard to the second most reliable form of financial capital, from a regulator's point of view.
		The forms of banking capital were largely standardised in the Basel I accord, issued by the Basel Committee on Banking Supervision and left untouched by the Basel II accord.
		Tier 1 capital is considered the more reliable form of capital.
	en.wikipedia.org /wiki/Tier_2_capital (472 words)

	Capital (Site not responding. Last check: 2007-10-30)
		Capital is the value of a firm or other investment—it is the value of assets less the value of liabilities.
		Financial institutions tend to have capital ratios in the range of 4% to 10%, depending of course on the definition of capital being used.
		To distinguish these from regulatory capital calculations—and to emphasize their purpose of more accurately capturing the economic impact of specific business lines or transactions—these are referred to as economic capital calculations.
	www.riskglossary.com /articles/capital_allocation.htm (1338 words)

	FRBSF: Economic Letter - The Basel Proposal for a New Capital Adequacy Framework (07/30/1999)
		The framework is built on three pillars: minimum regulatory capital requirements that expand upon those in the 1988 Accord, direct supervisory review of a bank's capital adequacy, and the increased use of market discipline to encourage sound risk management practices.
		Capital charges for interest rate risk in the banking book and for operational risk (risks due to systems failures) are being considered.
		By creating capital requirements that are more closely aligned with actual bank risks, the proposal should mitigate many of the shortcomings of the current Accord.
	www.frbsf.org /econrsrch/wklyltr/wklyltr99/el99-23.html (1314 words)

	Bank Capital Requirements
		A bank's capital, also known as equity, is the margin by which creditors are covered if the bank's assets were liquidated.
		It is important to note that the capital requirement applies to assets while the reserve requirement applies to liabilities.
		The minimum capital is specified as a percentage of the risk-weighted assets of the bank.
	wfhummel.cnchost.com /capitalrequirements.html (612 words)

	FDIC: FYI - Risk-Based Capital Requirements for Commercial Lending: The Impact of Basel II
		Of all the changes in capital regulation being considered by the Basel Committee on Banking Supervision, the most fundamental shift from current practice is that the risk-based capital requirements for the largest banks would no longer be based on a few pre-set ratios dictated by the regulators.
		The purpose of this article is to demonstrate the mechanics of the Basel II risk-based capital calculation for commercial credit exposures, and to present evidence on the impact of the new calculations on capital requirements for syndicated loans.
		The new minimum regulatory capital requirements for specific portfolios could nevertheless have ramifications both for the type of lending large banks conduct and for the locus of specific types of lending as between the largest banks and other U.S. banks.
	www.fdic.gov /bank/analytical/fyi/2003/042103fyi.html (5353 words)

	Banking on Basel: An Alternative for Capital Requirements - Southwest Economy, July/August 2006 - FRB Dallas
		Capital serves as a buffer to absorb losses and prevent failures and figures prominently in the banking industry's ability to lend.
		The amount of capital they require banks to hold is based mostly on the size and riskiness of the institutions' assets and their off-balance-sheet exposures.
		Since capital requirements are based on the distribution of assets, banks could reduce the amount of capital they are required to hold by moving toward less risky holdings.
	dallasfed.org /research/swe/2006/swe0604c.html (2201 words)

	Regulatory Capital (Site not responding. Last check: 2007-10-30)
		Regulatory capital requirements largely originated in the United States as a response to the deregulation of the 1970s and 1980s.
		The primary purpose of capital requirements for securities firms was to protect clients who might have funds or securities on deposit with a firm.
		Account insurance and regulations requiring segregation of investor assets had largely mitigated the risks that capital requirements for securities firms were intended to address.
	www.riskglossary.com /articles/regulatory_capital.htm (1224 words)

	FDIC: FDIC Law, Regulations, Related Acts - Rules and Regulations
		The FDIC also must evaluate capital, as an essential component, in determining the safety and soundness of state nonmember banks it insures and supervises and in determining whether depository institutions are in an unsafe or unsound condition.
		The directive may require the bank to submit to the appropriate FDIC regional director, or other specified official, for review and approval, a plan describing the means and timing by which the bank shall achieve the minimum leverage capital requirement.
		In addition to addressing a bank's minimum leverage capital requirement, the capital directive may also address minimum risk-based capital requirements that are to be maintained and calculated in accordance with appendix A to this part.
	www.fdic.gov /regulations/laws/rules/2000-4400.html (5003 words)

	FRB: Speech, Bies--Linkages between Internal Capital Measures and Regulatory Capital Requirements--December 6, 2005
		For losses beyond the normal range of expectations, sufficient capital should be in place to absorb the loss and leave the financial institution stable and able to continue operating effectively.
		That is, just looking at risk models and not tying capital to the measured risk exposures does not provide the backstop that supervisors need to ensure that each institution has the appropriate capital in place before the unexpected loss occurs.
		Capital should be based on risk exposures, and the evolving risk modeling methodologies provide improved tools to better determine the appropriate level of capital.
	www.federalreserve.gov /boarddocs/speeches/2005/20051206/default.htm (3936 words)

	Topics in Actuarial Analysis: Economic Capital (Site not responding. Last check: 2007-10-30)
		EC is the amount of capital that banks and insurance companies set aside as a buffer against potential losses from their business activities.
		Economic capital based on the probability of ruin is determined by calculating the amount of additional assets needed to reduce the probability of ruin to the probability target specified by management.
		Capital requirements are generally targeted using simplified methods (e.g., factor approaches) at levels appropriate for the aggregate industry and cannot reflect the nature of the company’s risks to the degree that can be achieved through a customized internal model.
	www.fenews.com /fen37/topics_act_analysis/topics_act_analysis.html (1341 words)

	Rule 15c3-1 -- Net Capital Requirements for Brokers or Dealers
		Deduct from net worth in computing net capital 1 percent of the contract value of all failed to deliver contracts or securities borrowed that were allocated to failed to receive contracts of the same issue and which thereby were excluded from Items 11 or 12 of Exhibit A, Rule 15c3-3a.
		Such lesser requirement as may be approved by the Commission under specified terms and conditions upon written application of the dealer and the carrying broker or dealer.
		The partnership agreement provides that capital contributed pursuant to a satisfactory subordination agreement as defined in Appendix (D), Rule 15c3-1d, shall in all respects be partnership capital subject to the provisions restricting the withdrawal thereof required by paragraph (e) of this section.
	www.law.uc.edu /CCL/34ActRls/rule15c3-1.html (8551 words)

	Bundesbank - Banking Supervision - Basel II - Pillar 1: Minimum capital requirements
		Compliance with the capital requirements under Basel II (from end-2006) will be gauged as now by the so-called capital coefficient, which must amount to at least 8%.
		The measurement of the minimum capital requirements is based on an average assessment of risk dispersion in the banking sector and therefore does not correspond in every case to the specific circumstances of individual institutions.
		Credit institutions will therefore be expected to maintain more capital than computed under the minimum capital requirements if this is called for by their individual risk situation.
	www.bundesbank.de /bankenaufsicht/bankenaufsicht_basel_saeule1.en.php (265 words)

	Eurex - Capital Requirements & Fund Contributions (Site not responding. Last check: 2007-10-30)
		When calculating capital, the capital already deposited for the Repo-Clearing-License is taken into account.
		When calculating capital, the capital already deposited for the Derivatives- and Bonds-Clearing-License is taken into account.
		The amount contributed to the Eurex Clearing AG clearing fund varies depending on the status of the given clearing member and its total margin requirement.
	www.eurexchange.com /clearing/membership/requirements.html (224 words)

	Letter on Proposed EU Capital Requirements, January 2003
		The paper concludes that the justification for bank-style capital requirements does not apply to the asset management industry, that there are better ways than capital requirements to protect asset management clients-including insurance and process regulation-and that high capital requirements in asset management have anti-competitive effects.
		In particular, we are concerned about the condition that would require all the investment firms within a group to be authorized and supervised by the same member state to be eligible for the waiver.
		In Annex H-3, the Commission describes the capital requirements for operational risk under the Standardized Approach, which is the sum of the capital requirements calculated for each of the business lines.
	www.ici.org /statements/cmltr/03_eu_cap_req_com.html (1410 words)

	FRBB Working Papers: Deposit Insurance, Capital Requirements, and Financial Stability
		This paper assesses the effects of insurance and capital requirements on assets' equilibrium returns in a capital-asset-pricing model in which intermediaries possess better information than the public about the yields on a set of assets.
		Greater capital requirements increase intermediaries' implicit risk premium and diminish their capacity to stabilize equilibrium returns.
		Because financial stability ultimately depends on the stability of returns on capital goods, macroeconomic policy ultimately underwrites the lower cost of capital promised by insurance and the security promised by capital requirements.
	www.bos.frb.org /economic/wp/wp2000/wp00_3.htm (240 words)

	Virginia Public Defender Commission - Capital Defense Requirements
		CAPITAL CASES: Pursuant to §19.2-163.8(E) of the Code of Virginia of 1950, as amended, the Supreme Court and Public Defender Commission, in conjunction with the Virginia State Bar, hereby set forth the following standards required for appointment of counsel in capital cases.
		When Circuit Courts, pursuant to §19.2-163.7 of the Virginia Code, appoint counsel for an indigent defendant charged with a capital offense or under sentence of death, it is strongly urged that such Court appoint two (2) attorneys for trial, appellate, and habeas proceedings.
		To develop initial training courses for attorneys who wish to begin serving as court-appointed counsel, and to review and certify legal education courses that satisfy the continuing requirements for attorneys to maintain their eligibility for receiving court appointments.
	www.indigentdefense.virginia.gov /capitaldefenserequirements.htm (326 words)

	Capital requirements - Definition from Investor Dictionary - Define meaning of the word Capital requirements
		Bank's and depository institutions are regulated by governments to disclose and handle their capital in a certain way.
		In the United States, "depository institutions" are subject to risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System (FRB).
		These guidelines are used to evaluate capital adequacy based primarily on the perceived credit risk associated with balance sheet assets, as well as certain off-balance sheet exposures such as unfunded loan commitments, letters of credit, and derivative and foreign exchange contracts.
	www.investordictionary.com /definition/capital+requirements.aspx (314 words)

	Virginia Public Defender Commission - Requirements
		Have at least five years of criminal litigation practice (defense or prosecution) within the past seven years including experience as defense counsel in at least five jury trials, tried to verdict, involving violent crimes with maximum penalties of at least 20 years or more.
		The Commission may, in its discretion, waive the requirements set out in this section for individuals, who otherwise demonstrate their level of training and experience.
		If the attorney has been an active member of the Virginia State Bar for more than one year and certifies that he has, within the past year, been lead counsel in four cases involving juveniles in juvenile and domestic relations court, the requirement to complete the 10 hours of continuing legal education shall be waived.
	www.indigentdefense.virginia.gov /requirements.htm (666 words)

	Capital Markets Transparency and Security: The Nexus Between U.S.-China Security Relations and America's Capital Markets
		Capital markets security may be broadly defined as the nexus between foreign fundraising activities in the U.S. capital markets and traditional national security concerns.
		Due to China's extensive capital requirements and accelerated international fundraising initiatives, that country serves as an instructive case study in this rapidly emerging national security and human rights portfolio.
		A sea change could occur by which foreign securities are purchased should public pension and other funds incorporate national security, human rights and religious freedom concerns into their "due diligence" risk assessments of foreign registrants and other overseas investment opportunities.
	www.uscc.gov /researchpapers/2000_2003/reports/cpmkex.htm (1204 words)

	Additional Capital Requirements in a Models Environment
		Capital charges currently applied by securities supervisors and banking supervisors (the latter under the Basle 'standard' approach) in some respects overcompensate for these particular categories of risk.
		Capital requirements based solely on the outputs of VaR models are not in themselves sufficient.
		For example, most regulators require a minimum level of capital to be in business, and securities firms operating in the European Union under the Capital Adequacy Directive (CAD) must maintain capital equal to one quarter of their previous year's fixed overheads (to help ensure an orderly wind-down of the firm).
	riskinstitute.ch /145020.htm (404 words)

	Working capital requirements revisited. \| Accounting > Reports & Statements from AllBusiness.com (Site not responding. Last check: 2007-10-30)
		Therefore, a specific project's working capital requirements are increases in current assets attributable to the project less increases in current liabilities that also are attributable to the project.
		Scott and Petty 4~ surveyed large companies on capital budgeting practices and found that topics regularly discussed in financial literature, such as cost of capital, were considered less difficult in practice than cash flow estimation, which has received much less attention.
		However, apart from an occasional reference in advanced financial literature, the integration of annual NWC requirements in capital budgeting where NWC requirements are endogenous to the project appears to be forgotten.
	www.allbusiness.com /periodicals/article/391085-1.html (725 words)

	Capital Advance Leasing, Inc. (Site not responding. Last check: 2007-10-30)
		Capital Advance is a nationwide provider of asset-based financing and leasing.
		Capital Advance leasing programs are designed to meet our partners' specific business goals.
		Experience and diversified funding resources allow Capital Advance to design financing for servicing a broad range of industries, challenging sales situations, emerging companies, and multi-tier distribution channels.
	www.capital-advance.com /vss/company/index.shtml (162 words)

	VII. Airport Capital Financing Requirements Must Be Met
		The Commission recommends that AIP contributions to airport capital requirements should be funded at $2 billion annually over the next five years assuming growth adjustments through this period.
		The Commission agrees with GAO and Coopers and Lybrand that there are several key reasons for the differing assessments of airport capital requirements: incompatibility and purpose of collected data, availability of data, and the underlying premise of the data collection process.
		This recommendation is based on the requirement to balance capital spending, of federally collected taxes and fees between air traffic control and airport needs, and the recognition that airport capital funding has a second federally-authorized revenue source in PFCS.
	www.faa.gov /ncarc/consensus/seven.htm (1986 words)

	Institute Comments on Proposed EU Capital Requirements, January 2003
		Basel Accord, which is scheduled to be adopted in the fall of 2003, into a revised EU capital adequacy framework.
		The Commission is expected to issue the final consultation paper on a proposal to revise the Capital Adequacy Directive in the summer of 2003.
		The Institute states that the justification for bank-style capital requirements does not apply to the asset management industry, that there are better ways than capital requirements to protect asset management clients, and that high capital requirements in asset management have anticompetitive effects.
	www.ici.org /statements/cmltr/arc-mrk/03_eu_cap_req_cvr.html (225 words)

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