Economic Capital Management

Economic Capital Management

FRA associates have deep industry experience within top global financial institutions, and from multiple banking specialties.  During the past seven years many leading banks--often in collaboration with system vendors--have developed economic capital measures and then established a management culture based on this knowledge.  Eventually, this work influenced bank regulators to adopt better capital standards as is currently reflected in the Basel-II initiative.  This same objective is now being sought by smaller financial institutions.  In some cases, it is even being recommended by bank regulators that oversee these institutions.