Economy, asked by kuttubaby3371, 11 months ago

Difference between regulatory capital and economic capital key difference

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Answered by Eerisha
0

Economic capital (EC) refers to the amount of risk capitalthat a bank estimates it will need in order to remain solvent at a given confidence level and time horizon. Regulatory capital (RC), on the other hand, reflects the amount of capitalthat a bank needs, givenregulatory guidance and rules.

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