Concurrent Capital Buffers in a Banking Group

Michal Skořepa (m.sko@seznam.cz)

Chapter Thematic Article 2 in CNB Financial Stability Report 2013/2014, 2014, pp 128-136 from Czech National Bank, Research and Statistics Department

Abstract: In this article we simulate how much the capital of a parent bank must be increased above the minimum capital requirement applying to the parent alone as a result of a requirement being imposed on the banking group as a whole, and how the probability of failure of a subsidiary and the group changes after a capital buffer is imposed on the group as a whole and/or the subsidiary. The simulation takes into account the relative sizes of the parent and the subsidiary, the parent’s share in the subsidiary, the similarity between the business models of the parent and the subsidiary, and the preparedness of the parent to support the subsidiary if the latter is in danger of failing.

Date: 2014
ISBN: 978-80-87225-53-0
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cnb.cz/export/sites/cnb/en/financial-s ... -2014_article_ii.pdf (application/pdf)
https://www.cnb.cz/en/financial-stability/thematic ... financial-stability/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cnb:ocpubc:fsr1314/2

Access Statistics for this chapter

More chapters in Occasional Publications - Chapters in Edited Volumes from Czech National Bank, Research and Statistics Department Contact information at EDIRC.
Bibliographic data for series maintained by Tomas Karhanek (tomas.karhanek@cnb.cz).