(1997) to study the impactof risk-based capital, is used to examine how PCA simultaneouslyinfluenced bank capital ratios and … capitaland portfolio risk is explicitly recognized, and as such, theimpact of possible changes in bank capital ratios on risk ina …

In August 1996, the U.S. bank regulatory agenciesadopted the market risk amendment (MRA) to the 1988Basle Capital … aside capital to cover themarket risk exposure in their trading accounts. (For furtherdetails on the market risk amendment …, see Federal Register[1996].) The market risk capital requirements are to bebased on the value-at-risk (VaR) estimates …

for establishingthe capital adequacy of a trading business forregulatory purposes. When properly structured andrefined, it … should be implemented as an alternative,and not an “add-on,” to existing capital standards;• that, for progress to be made …

into a firm’s own methodology for allocatingrisk capital to its individual business units and for determiningits optimal … capital structure. We also consider theimplications of these developments for the future approachto determining regulatory … capital requirements.[...] …

This morning, I would like to give a few practical commentson capital adequacy from an insurance companyperspective. In … doing so, I will present two views on capitaladequacy and capital allocation in the insurance industry.The first view is the … regulatory perspective, that is, themotivations behind regulatory capital requirements in theinsurance industry, the structure of …

[...]This paper focuses on the relative emphasis thatthe structure of regulatory capital places on formulas andon … supervision. The two are not viewed as mutually exclusive,but as elements to which capital policy implicitlyassigns relative …

It is a great pleasure for me to be here and to participate inthe discussion of the future of capital adequacy …