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Banks must maintain a balance between their own capital and the level of accepted aggregate risk to ensure financial … regulatory risks and the risk capital required to fully cover bank's total risk (economic capital). Therefore, the Basel … Committee on Banking Supervision requires banks to implement ICAAP procedures to ensure regular risk assessment and maintain a …
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Managers of official dollar reserves are bound to pay attention to the debate over safe assets: their investment portfolios operationally define such assets. This chapter argues that reserve managers need not worry about a shortage of safe assets. The debate turns first on whether demand for...
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