Capital Adequacy Conception of Banks and Investments Firms in Conditions of European Union Cover Image

Koncepcia kapitálovej primeranosti bánk a investičných podnikov v podmienkach Európskej únie
Capital Adequacy Conception of Banks and Investments Firms in Conditions of European Union

Author(s): Eva Horvátová
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: capital adequacy; own funds; market risks; operational risk; minimal level of capital to cover risks; investment companies

Summary/Abstract: Main point of capital adequacy in Basel I, Basel II and CAD Directives is measuring of risks of credit institutions and investment firms and valuation minimal level of capital to cover them. The aim of this article is to show how the European Union legislation responds to Capital Accords Basel I and Basel II. The substance is on the Capital Adequacy Directives CAD I, CAD II and CAD III. CAD Directives were prepared on conditions of investment compa-nies and for operations of trading book in banks. In conditions of national banking and financial systems of many countries are implemented the same capital accords with different result. The reason is in different access to appli-cation of capital adequacy rules (Basel Accords or CAD Directives) in diverse territorial parts.

  • Issue Year: 56/2008
  • Issue No: 06
  • Page Range: 582-597
  • Page Count: 16
  • Language: Slovak
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