Talk:Capital requirement

Consquences of Undercapitlaization

It's baffling that nowhere in this article it's explained how regulators respond to undercapitalization or that ultimately a bank will be (should be?) foreclosed on for being undercapitalized/having negative equity. — Preceding unsigned comment added by 209.150.57.105 (talk) 22:00, 21 March 2016 (UTC)

To "baffle" means "to confuse so as to keep from understanding or solving; [to] puzzle; [to] confound...." Webster's New World Dictionary of the American Language, p. 104, World Publishing Co., Inc. (2nd Coll. Ed. 1978). So, it appears that you may be "confused, puzzled or confounded" by the fact that the article does not contain some relevant information you believe should be in the article. You should not be confused, puzzled or confounded. Many articles on many topics in many places (in Wikipedia and elsewhere) may seem to be incomplete to you, or to me, or to someone else. Wikipedia is maintained by unpaid volunteers. Wikipedia articles are generally works in progress -- not completed ones. If you want to improve the article, review Wikipedia's policies and guidelines and add information from reliable, previously published sources. Famspear (talk) 22:13, 21 March 2016 (UTC)

Citibank Assets

The Citibank example showing "Components of Capital under Regulatory Guidelines" states numbers are in $million. The 2003 risk adjusted assets were $750,293. Seems a bit high ($750 trillion).192.26.212.72 (talk) 19:22, 25 April 2008 (UTC)

It would be a useful comparative example to add the capital ratios in Citigroup at the end of 2008. - Tenebris —Preceding unsigned comment added by 207.112.24.44 (talk) 20:25, 5 March 2009 (UTC)

I believe we are seeing $750+ $Billion in that example. Is that still high in your opinion? —Preceding unsigned comment added by 67.3.141.215 (talk) 16:01, 13 March 2011 (UTC)

Perhaps the tone should be adjusted slightly to sound more fair and balanced, and some unsensible concepts be clarified

I think some changed to the second paragraph about inflation adjustments etc should be clarified or changed. For example the "...has destroyed bank credit analysis departments" etc. Also the inflation adjustment explanation doesn't make any sense to me. If the bank has 10 equity, 90 deposits and 100 loaned out with a risk weight of 1.0 to simplify. Why would only the capital value be adjusted for inflation and not the lended out money? It doesn't make any sense. Is the loans in another currency than the capital? -- 16:30, 24 August 2007 (UTC)

Headline

Basel II supersedes Basel I. Thus this is somewhat obsolete now and applies only to the few countries that have opted out of the Basel II accord (most notably China, India and the US (Basel II only applies to some 10 of the largest banks).

INDIA is committed to honour BASEL-II norms. And, the Reserve Bank of India, the central supervisory bank in India, is already making changes in the financial sector to make all banks align their financial position/structures with those of Basle-II norms, which shall be applicable from 31.03.2007. A major offshoot of these steps is the need to raise a lot of capital from the domestic and international market by many major Indian banks.

what is meant by Average total consolidated assets ?

is leverage ratio is not debt to equity ratio ? please clarify the leverage in context of Capital Requirement.

Include insurance companies?

I think insurance companies have to adhere to capital requirements, too, but they seem to be excluded from this article.
The sentence

The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital

could be replaced by

The capital requirement is a regulation, which sets a framework on how banks, depository institutions and insurance companies must handle their capital.ML-Est 17:04, 24 June 2007 (UTC)

Thanks

I think this is an excellent article. Thanks to all those who contributed. Wish there were more articles of similar quality. Todd (talk) 19:12, 8 September 2008 (UTC)

Too many Cs ?

"The 5 C's of Credit, Character, Cash Flow, Collateral, Conditions and Capital", - umm, isn't that 6 ? —Preceding unsigned comment added by Mahutchinson (talk • contribs) 15:15, 26 March 2009 (UTC)

Simple initial definition

Is there any way to give at some point a simple definition in layman's term? (e.g. "Banks require that 8% capital to asset ratio", linking it to balance sheet and implications) This simple explanation can serve the role of a "model": it does not reflect reality exactly, but permits an understanding for the uninitiated. Thanks for the excellent work. — Preceding unsigned comment added by 128.103.221.18 (talk) 05:56, 15 December 2011 (UTC)

Merge proposal

Support the March proposal to merge Minimum capital requirement to here, as that page is unreferenced and heavily overlaps in scope with this one. I also note that there was an unopposed 2015 proposal to do the same (see Talk:Minimum capital requirement#Minimum capital requirement vs Capital requirement). However, let's continue the discussion here. Klbrain (talk) 20:46, 11 September 2021 (UTC)

Coming back to this, I note no referenced material on Minimum capital requirement, and that is has been tagged since 2013 for referencing. Given this, applying WP:TNT to that page and redirecting here (where the important content is covered already in a better manner). Klbrain (talk) 05:14, 1 September 2022 (UTC)

"Capital buffer"

Could an editor well versed in this topic define a capital buffer in a section here or elsewhere? E.g. Domestic Stability Buffer is described as a "capital buffer" by a regulator. Cheers, Facts707 (talk) 10:21, 21 June 2023 (UTC)