Capital adequacy beyond Basel
Subtitle: banking, securities, and insurance
By: edited by Hal S. Scott
Contributors: Scott, Hal S
Publisher: Oxford University Press
Published: 2005
Place of publication: New York
Language: eng
Number of pages: 340
Subjects: Bank reserves -- Government policy; Insurance -- Reserves -- Government policy; Banks and banking -- State supervision; Financial institutions -- State supervision; Bank loans
Description: "In Capital Adequacy Beyond Basel: Banking, Securities, and Insurance, Hal Scott looks beyond the second generation of the Basel rules for banks to show that banking rules do not fit easily with the activities of securities or insurance firms, which engage in different activities and whose failure poses much less risk to the financial system. The inability of bank-based rules to deal adequately with different activity risks is reflected in the difficulty in applying Basel rules to bank holding companies that engage in nonbanking activity through non-bank subsidiaries."

"The book also addresses the Basel approach to operational risk, suggesting that operational risk is extremely difficult to identify and quantify. It questions why capital should be required for low-loss, high-frequency events, which are dealt with through reserves or provisions, or high-loss, low-frequency events that are dealt with by insurance. The main risk for which banks, and other firms, hold the most capital is business risk, and Basel requires no capital for this."--Jacket.
Notes: Includes bibliographical references and index
Table of contents: title: Capital regulation for position risk in banks, securities firms, and insurance companies; title: Capital adequacy in insurance and reinsurance; title: Consolidated capital regulation for financial conglomerates; title: Using a mandatory subordinated debt issuance requirement to set regulatory capital requirements for bank credit risks; title: No pain, no gain? effecting market discipline via "reverse convertible debentures"; title: The use of internal models: comparison of the new Basel credit proposals with available internal models for credit risk; title: Sizing operational risk and the effect of insurance; title: Enforcement of risk-based capital rules