Kapitaalvereiste

Capital requirements are the minimum amount of capital that regulators mandate banks to hold. These requirements help ensure that banks can absorb losses and continue operating during periods of financial stress.

One key measure is the Capital Adequacy Ratio, or CAR. It compares a bank’s capital to its risk-weighted assets.

For example, government bonds are considered very safe and may carry a risk weight of zero percent. Unsecured loans, which are riskier, may carry a risk weight of one hundred percent. So, if a bank holds one million dollars in government bonds and one million dollars in unsecured loans, only the loans count toward risk-weighted assets. That gives a total of one million dollars in risk-weighted assets.

Now, suppose the bank has one hundred twenty thousand dollars in capital. The CAR would be 12 percent.

A higher CAR means the bank is better able to absorb losses and protect depositors. It also helps prevent panic and bank runs that can trigger broader financial instability.

Capital requirements are based on Basel III, a global framework introduced after the 2008 crisis. Under this system, CAR levels vary by a bank’s size and risk.