Internationale Aktivitäten zur Harmonisierung bankaufsichtlicher Eigenkapitalvorschriften: Eine Zwischenbilanz (Teil II)

Abstract

International Activities to Harmonize Banking Supervision Regulations Concerning Bank Capital: An Interim-State Report

Part 2: Equity Capital Requirements in Respect of Risky

The Committee on Banking Supervision of the Bank for International Settlements (“Cooke” Committee) adopted a recommendation concerning the equity capital credit institutions are required to hold in respect of lendings exposed to the risk of being lost. This recommendation provides for a differenciating risk assessment of all asset positions and all transactions off the balance sheet as a function of the contracting partner’s creditworthines. According to the recommendation, the desired standard level of equity at the base of all risky transactions is 8% (4% of which must be core capital). Worldwide acceptance of this concept allows a level playing field to be created for all market participants. The EC solvency Directive largely conforms to the “Basle model” as regards its aims and systematics as well as its contents. It must have been cast into national law by 1 January 1993 which requires certain adaptations of Principle I pertaining to Section 10 of the Credit Act. The interest variation and other price risks represent risks for banks and securities houses because of the trend towards securitization and of the trade in derivative instruments. Covering the price risk is one of the foremost aims of the Interim-State Report submitted by the Basle Committee in 1990 as well as of the EC’s draft capital adequacy Directive. The latter distinguishes between the foreign exchange risk, the “position risk” in respect of fixed-interest securities and shares, the counterpart/y settlement risk as well as other (operational) risks. The equity capital provisions the Directive requires to have been met in respect of exposures apply both to the trading book of securities houses and to credit institutions.