CAPITAL ISSUES

Banks are important and even more important is bank capital. It is the most important tool that a bank can use to manage its business. Bank capital is undergoing changes. Gone are the days of capital ratio's that were close to zero. Today's new rules require banks to hold more capital. The question is how much capital should a bank need and how should it be structured... The bad news on bank capital is that there is no Capital for Dummies book. But that should not discourage you. All the information about bank capital is public. See the column to the left in my blog. I try to order the links in such a way that you will find your way through these documents... The ambitious attempt to clarify the World of Regulatory Bank Capital Latest comments on bank capital, Basel III, CoCos, hybrid capital instruments and fixed income for banks.