Economic and Regulatory Capital in Banking: What is the Difference?∗ Abel Elizalde Rafael Repullo CEMFI and UPNA CEMFI and CEPR July 2006 Abstract We analyze the determinants of regulatory capital (the minimum required by regulation)‚ economic capital (that chosen by shareholders without regulation)‚ and actual capital (that chosen with regulation) in the single risk factor model of Basel II. We show that variables that only affect economic capital‚ such as the intermediation margin
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Customer (KYC) norms / Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT) in order to protect themselves and their customers from misuse by such fraudsters. Small Accounts: ’Small account’ means a savings account in a banking company where (i) the aggregate of all credits
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CALTEX vs CA Facts: On various dates‚ defendant‚ a commercial banking institution‚ through its Sucat Branch issued 280 certificates of time deposit (CTDs) in favor of one Angel dela Cruz who deposited with herein defendant the aggregate amount of P1‚120‚000.00. Angel dela Cruz delivered the said certificates of time deposit (CTDs) to herein plaintiff in connection with his purchase of fuel products from Caltex (inc). Sometime in March 1982‚ Angel dela Cruz informed Mr. Timoteo Tiangco‚ the Sucat
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participants in the financial markets. Participants include individuals‚ corporate entities and the government. The most fundamental concept of economics; Demand and Supply of money determine the liquidity in the system.And the central bank‚ the Reserve Bank of India (RBI) has the power to increase or decrease the liquidity in the financial markets using various policy tools. So in a sense we can imagine that the liquid tap is housed within the RBI. If the level of liquidity in the system drops
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Money Supply CU - currency held by household and firms D - Deposits held by HF M - Money Supply H - Monetary Base RE - Reserves of Charted bank. These are the currency held by chartered banks plus the deposits of chartered banks at the central bank. rD - reserves to deposit ratio c - currency to deposit ratio rD = RE/D < 1 c = CU/D < 1 M = {(c + 1) / (c + rD) * H } m m > 1 We now want to study how the central bank can affect H and therefore M To do this we need to understand
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Bank of Baroda ACCOUNT OPENING FORM FOR INDIVIDUALS Branch: Account No. F. No.-401 Y Y Y _________________________________________________ Date: Branch ALPHA D D M M Y Scheme Code ------------------------------------------------------------------------------------------------------------------------------------I/We request you to open my/our deposit account with your branch/bank as under: (Tick (√) relevant type of account) Type of Account Scheme Name Type of Account Scheme Name Savings
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CAMELS RATINGS USAID-Funded Economic Governance II Project Presented To: CBI Bank Supervision Examiners Date:2006-10-29 1 Authors This document was prepared by: Patrick Y. Trautmann BearingPoint This document is protected under the copyright laws of the United States and other countries: it has been prepared by BearingPoint‚ Inc. (“BearingPoint”) Technical Advisors and/or contractors working directly for BearingPoint under the auspices of the U.S. Agency for International Development
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References: Cariboni‚ J.‚ Branden‚ K. V.‚ Campolongo‚ F.‚ & De Cesare‚ M. (2008). Deposit protection in the EU: State of play. Journal of Banking Regulation ‚9(2) 82-101. Committee‚ A.-N. Z. (2009‚ September 22). Is a Credible Exit from Government Debt and Deposit. Australia-New Zealand Shadow Financial Regulatory Committee ‚ pp. 1-9. Edirisuriya‚ P. (2010). Money and Capital Markets. North
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Regular Recurring Deposit Features & Benefits Fixed monthly installments are being remitted to Recurring Deposit by a Standing Order‚ ECS Mandate or by regular direct remittance Opening Balance: Rs.500/- Interest Rate: As applicable for term deposits including the benefits of Senior Citizens TDS in Interest: No TDS as per current regulations Deposit Tenor: 12 months to 120 months Nomination facility: Available Premature Closure: Allowed |[pic]
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Pressure The individual has little to no pressure on BDO. BDO is offering a variety of financial services to individuals. Switching to another bank would mean that these special services will be lost. Example: It has longer banking hours (does not close at 3pm) It’s open on weekends. Some of its branches are located in SM Malls. The Bargaining Power of Suppliers (Investors): Low to Medium Pressure Its main source of money supply is from deposits. Because
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