{"id":24230,"date":"2015-02-03T01:25:55","date_gmt":"2015-02-03T00:25:55","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=24230"},"modified":"2015-02-03T03:17:56","modified_gmt":"2015-02-03T02:17:56","slug":"24230","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/24230\/","title":{"rendered":"Equity Capital Requirements for Banks?"},"content":{"rendered":"

The New York Federal Reserve comments:\u00a0 Do riskier banks have more capital?\u00a0 Banking companies with more equity capital are better protected against failure because they can absorb more losses without becoming insolvent.\u00a0 How has the relationship between capital and risk evolved over time?<\/p>\n

There is not question that banks’ capital policies have become more precautionary in recent years. The Federal Reserve has implemented annual supervisory stress tests which are explicitly designed to remain well-capitalized even under severe macroeconomic downturns.\u00a0 Improved risk management, greater awareness of downside risks and changes in supervisory practices have also had an impact. Equity capital should be the focus.<\/p>\n

\"Banking\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The New York Federal Reserve comments:\u00a0 Do riskier banks have more capital?\u00a0 Banking companies with more equity capital are better protected against failure because they can absorb more losses without becoming insolvent.\u00a0 How has the relationship between capital and risk … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-24230","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t