Commercial-bank risk management is fundamental in determining bank profitability, or indeed bank failure. Capital adequacy is widely considered the final safeguard of a bank?s solvency. Capital adequacy has been regulated chiefly according to the framework put forward by the Basel Committee on...

A social rate of discount is an important variable for cost-benefit analysis. Its size can be crucial for an approval (or disapproval) of the project under evaluation, therefore it is important to have a theoretically founded estimate of the discount rate. There are two main approaches to...