Basel – Page 2 – itho's internet resources

Understanding the Basel Accords: Regulations and Global Impact

By Itho May 16, 2007

[ad_1] What Is the Basel Accord? The Basel Accords are crucial banking regulation frameworks formalized by the Basel Committee on Bank Supervision to ensure that banks worldwide maintain adequate capital.…

What Is Exposure at Default (EAD)? Meaning and How To Calculate

By Itho August 18, 2006

[ad_1] Exposure at default (EAD) is the total value a bank is exposed to when a loan defaults. Financial institutions calculate their risk using the internal ratings-based (IRB) approach. Banks often…

Economic Value of Equity (EVE): Definition and Risks

By Itho May 8, 2006

[ad_1] What Is the Economic Value of Equity (EVE)? The Economic Value of Equity (EVE) calculates the difference between the present values of a bank's asset and liability cash flows,…

Understanding Contingent Convertibles (CoCos) in European Banking

By Itho November 20, 2003

[ad_1] What Are Contingent Convertibles (CoCos)? Contingent convertibles (CoCos) are debt securities issued by European banks to strengthen their capital structure. These bonds automatically convert into equity or are written…

What Is the Capital Adequacy Ratio (CAR)?

By Itho November 19, 2003

[ad_1] What Is the Capital Adequacy Ratio (CAR)? The capital adequacy ratio (CAR) expresses how much capital a bank holds compared to its risk‑weighted asset base. Also known as the…