Capital Management in Banks

Indian Banker, Vol 4, No. 12, December 2009

6 Pages Posted: 7 Feb 2010

Date Written: December 2009

Abstract

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

Mathur, Sumit, Capital Management in Banks (December 2009). Indian Banker, Vol 4, No. 12, December 2009, Available at SSRN: https://ssrn.com/abstract=1548560

Sumit Mathur (Contact Author)

SAS Institute Inc. ( email )

100 SAS Campus Drive
Cary, NC 27513-2414
United States

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