Management of NPA via Capital Adequacy Norms

New Capital Adequacy Framework

A leverage ratio rule for capital adequacy

This paper studies the economic foundations formaximum leverage ratio capital adequacy rules. The paper makes three contributions to the literature. First, we show how to determine the maximum leverage ratio such that the probability of insolvency is less than some predetermined quantity. Two, we show that a leverage ratio rule controls for the same risks as does a Value-at-Risk (VaR) capital a...

The implications of the new capital adequacy rules for portfolio management of credit assets

Over the past several years, there has been an extensive discussion among practitioners and academics about whether and how a portfolio management approach could help banks to better manage risk capital and create shareholder value. In this article, the authors argue that there are four key drivers which require banks to move from a transactional to a more portfolio management like approach whe...

Adequacy of Knowledge Management Structures

This study identifies the main elements of knowledge management structures and examines their effects on knowledge management adequacy and subsequently on knowledge management effectiveness. A path model representing the antecedents of knowledge management structure adequacy and the consequence on knowledge management effectiveness is developed and tested empirically based on a survey. The resu...

Capital Adequacy Ratio and Financing Behavior in Iran’s Banking System

For Iran as an oil exporter country, heavy reliance on the extractive sector for generating fiscal revenues and export earnings translates into increased vulnerabilities to oil price shocks. The structure of the economic policy, and the   banking systems make macroprudential policy a particular relevant tool for Iran. The capital adequacy is a macro prudential instrument used to maintain the st...