Economy, asked by rahulsalva89461, 1 year ago

Difference between regulatory capital and economic capital frm

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Answered by Prashant9899
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.

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