Capital Management in Banks
Indian Banker, Vol 4, No. 12, December 2009
6 Pages Posted: 7 Feb 2010
Date Written: December 2009
This article examines risk management as a strategic lifecycle based process, and particularly delves in the area of ‘Capital Budgeting’ as an indispensible tool to avert future catastrophes of the magnitude we witness today in global financial markets. It introduces a risk management framework called as ‘Capital Budgeting & Management Cycle,' and discusses its components like capital planning, allocation, attribution, risk aggregation, and performance measurement in detail that would enable a bank build a sound long term capital planning framework.
Keywords: economic capital, capital, basel II, capital planning, capital optimization, risk management
JEL Classification: G2
Suggested Citation: Suggested Citation