Capital Planning at Large Bank Holding Companies: Supervisory Expectations and Range of Current Practice
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Do Bank Holding Companies I I Act as “ Sources of Strength ” for Their Bank Subsidiaries ?
HOSE WHO WISH to determine why banks fail typically focus on the characteristics of banks and their local markets that make them vulnerable to losses.1 A key factor often overlooked, however, is capital injections by shareholders. A bank whose losses exceed its capital need not fail, if its shareholders (existing or new) inject sufficient additional funds to restore its capital ratio to a level...
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A bank affiliated with a multi-bank holding company (MBHC) is significantly safer than either a stand-alone bank or a bank affiliated with a one-bank holding company. Not only does affiliation reduce the probability of future financial distress, but distressed affiliated banks are more likely to receive capital injections and recover more quickly than other banks. Interestingly, the effect of a...
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تاریخ انتشار 2013