Publication: Regulating Market Risk in Banks : The Options
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1996-12
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2012-08-13
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Regulators concerned about the costs of bank insolvency and of systemic risk arising from the volatility of bank trading portfolios have developed three different approaches to setting risk-based minimum capital adequacy standards for market risk. The author evaluates those three approaches--building blocs, internal models, and precommitment--and assesses their possible implications for bank capital, competition, and pricing decisions.
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“Stephanou, Constantinos. 1996. Regulating Market Risk in Banks : The Options. Viewpoint: Public Policy for the Private Sector; Note No. 98. © World Bank. http://hdl.handle.net/10986/11602 License: CC BY 3.0 IGO.”
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