Difference between regulatory capital and economic capital frm
Answers
Answered by
0
Economic capital (EC) refers to the amount of risk capital that 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 capital that a bank needs, given regulatory guidance and rules.
Mark as brainliest
Similar questions
English,
7 months ago
English,
7 months ago
English,
7 months ago
English,
1 year ago
Social Sciences,
1 year ago
Social Sciences,
1 year ago