This paper contains a critique of solvency regulation such as imposed on banks by Basel I and II. It argues that banks seeking to maximize rate of return on risk-adjusted capital (RORAC) aim at an optimal level of solvency because on the one hand, solvency S lowers the cost of refinancing; on...

This paper contains a critique of solvency regulation such as imposed on banks by Basel I and II. Banks investment divisions seek to maximize the expected rate of return on risk-adjusted capital. For them, a higher solvency level lowers the cost of refinancing but ties costly capital. Sequential...

Accounting and the role of Accountants has permeated the modern societies. For the most part we have accepted the impartiality and objectivity of accounting and not recognized how accounting systems are embedded in a country's economic and legal framework, much of which is in turn shaped by...

Accounting and the role of accountants has permeated the modern societies. For the most part we have accepted the impartiality and objectivity of accounting and not recognized how accounting systems are embedded in a country's economic and legal framework, much of which is in turn shaped by...