Capital Adequacy beyond Basel

Banking, Securities, and Insurance

Edited by Hal S. Scott

This book is timely since the Basel Committee on Banking Supervision at the Bank for International Settlements is in the process of making major changes in the capital rules for banks. It is important that capital adequacy regulation helps to achieve financial stability in the most efficient way. Capital adequacy rules have become a key tool to protect financial institutions. The research contained within the book covers some key issues at stake in the capital requirements for insurance and securities firms. The contributors are among the leading scholars in financial economics and law. Their contributions analyze the use of subordinated debt, internal models, and rating agencies in addition to examining the effect on capital of reinsurance, securitization, credit derivatives, and similar instruments.

Capital Adequacy beyond Basel

Banking, Securities, and Insurance

Edited by Hal S. Scott

Description

This book is timely since the Basel Committee on Banking Supervision at the Bank for International Settlements is in the process of making major changes in the capital rules for banks. It is important that capital adequacy regulation helps to achieve financial stability in the most efficient way. Capital adequacy rules have become a key tool to protect financial institutions. The research contained within the book covers some key issues at stake in the capital requirements for insurance and securities firms. The contributors are among the leading scholars in financial economics and law. Their contributions analyze the use of subordinated debt, internal models, and rating agencies in addition to examining the effect on capital of reinsurance, securitization, credit derivatives, and similar instruments.

Capital Adequacy beyond Basel

Banking, Securities, and Insurance

Edited by Hal S. Scott

Introduction
1. Capital Regulation for Position Risk in Banks, Securities Firms, and Insurance Companies, Richard Herring and Til Schuermann
2. Capital Adequacy in Insurance and Reinsurance, Schott E. Harrington
3. Consolidated Capital Regulation for Financial Conglomerates, Howell E. Jackson
4. Using a Mandatory Subordinated Debt Issuance Requirement to Set Regulatory Capital Requirements for Bank Credit Risks, Paul Kupiec
5. No Pain, No Gain? Effecting Market Discipline via "Reverse Convertible Debentures", Mark J. Flannerty
6. The Use of Internal Models: Comparison of the New Basel Credit Proposals with Available Internal Models for Credit Risk, Michel Crouhy, Dan Galai, and Robert Mark
7. Sizing Operational Risk and the Effect of Insurance: Implications for the Basel II Capital Accord, Andrew P. Kuritzkes and Hal S. Scott
8. Enforcement of Risk-Based Capital Rules, Philip A. Wellons
Index

Capital Adequacy beyond Basel

Banking, Securities, and Insurance

Edited by Hal S. Scott

Reviews and Awards

"This book, by lawyers, economists, and experienced financial specialists, evaluates various aspects of risk management and the associated needs of banks, securities firms, and insurance companies for capital...this is a useful source for anyone concerned with the evolution and well-being of the world financial system."--Foreign Affairs