Search results
Results from the WOW.Com Content Network
Broadly speaking, in business enterprises, risk is traded off against benefit. RAROC is defined as the ratio of risk adjusted return to economic capital. The economic capital is the amount of money which is needed to secure the survival in a worst-case scenario, it is a buffer against unexpected shocks in market values.
Risk-weighted asset (also referred to as RWA) is a bank's assets or off-balance-sheet exposures, weighted according to risk. [1] This sort of asset calculation is used in determining the capital requirement or Capital Adequacy Ratio (CAR) for a financial institution.
In the denominator we have net assets or capital employed instead of total assets (which is the case of Return on Assets). Capital Employed has many definitions.
Under the Basel II guidelines, banks are allowed to use their own estimated risk parameters for the purpose of calculating regulatory capital.This is known as the internal ratings-based (IRB) approach to capital requirements for credit risk.
AOL latest headlines, entertainment, sports, articles for business, health and world news.
From Wikipedia, the free encyclopedia. Redirect page
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
A judge in Brazil has ordered Adele’s song Million Years Ago to be removed globally from streaming services due to a plagiarism claim by Brazilian composer, Toninho Geraes. Geraes alleges that ...