EconPapers    
Economics at your fingertips  
 

The Future of Regulatory Capital: General Principles and Specific Proposals

Arturo Estrella

Swiss Journal of Economics and Statistics (SJES), 1998, vol. 134, issue IV, 599-616

Abstract: There is a risk of an increasing disconnect between regulatory capital and what banks and other financial institutions do. The last few decades have brought tremendous changes in the nature of financial firms, their activities, and their approaches to risk management. In such an environment, past regulatory achievements provide no guarantee of future success. This paper argues for increased reliance on informed supervision of compliance with sound practices. Mechanical formulas may play a role in regulation, but they are in general incapable of providing a solution to the question of how much capital a bank should have. The paper concludes by applying these general principles to examine a series of specific new approaches to regulatory capital that are currently being discussed.

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sjes.ch/papers/1998-IV-9.pdf (application/pdf)

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:ses:arsjes:1998-iv-9

Access Statistics for this article

Swiss Journal of Economics and Statistics (SJES) is currently edited by Rafael Lalive

More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Bibliographic data for series maintained by Peter Steiner ().

 
Page updated 2019-08-10
Handle: RePEc:ses:arsjes:1998-iv-9