Beware of capital: much ado about nothing?

Capital increases can be offset by asset valuation, provision and income recognition forbearance


Bank regulators worldwide are currently fixated on reinforcing capital. There’s a good reason for this: capital is fundamental. But, under the surface, this appears to be a nominal rather than effective fixation, at least judging by the questionable quality of some of the components of minimum capital required by regulators in Europe and elsewhere. Moreover, paradoxically, the regulatory and supervisory emphasis on capital comes hand in hand with a trend, observed in several countries, to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account