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The continuing saga – Basel II developments: bank capital management in the light of Basel II – how to manage capital in financial institutions

David Rowe (David Rowe is Executive Vice President for Risk Management at SunGard Trading & Risk Systems, based in Palo Alto.)
Dean Jovic (Dean Jovic is Group Managing Director for Risk Management/Basel II at SunGard Trading & Risk Systems, based in Zurich.)
Richard Reeves (Richard Reeves is Managing Director of BancWare Whitelight at SunGard Trading & Risk Systems in London.)

Balance Sheet

ISSN: 0965-7967

Article publication date: 1 July 2004

Abstract

Capital is key to any financial institution. Companies in other industries need capital to buy property and production equipment. For financial institutions, the primary function of capital is to cover unexpected credit and market risks losses, because risk of such losses inevitably accompanies a bank’s core business of lending money and making markets. David Rowe, Dean Jovic and Richard Reeves explain why it is crucial for financial institutions to build an advanced economic capital framework and how that plays into current initiatives to implement the Basel II Capital Accord.

Keywords

Citation

Rowe, D., Jovic, D. and Reeves, R. (2004), "The continuing saga – Basel II developments: bank capital management in the light of Basel II – how to manage capital in financial institutions", Balance Sheet, Vol. 12 No. 3, pp. 15-21. https://doi.org/10.1108/09657960410699180

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Authors