The authors provide examples by which information from internal credit risk models might be usefully incorporated into regulatory or supervisory capital policies. In view of the modeling concerns described, incorporating internal credit risk measurement and capital allocation systems into the...

The primary purpose of this paper is to demonstrate that decentralized investment management systems may not always be efficient. Specifically, within the context of a particular portfolio choice paradigm it is shown that a given decentralized investment management system is (weakly) efficient...