Bank Capital -- further info

Doug Henwood dhenwood at panix.com
Tue May 4 07:16:02 PDT 1999


DANIEL.DAVIES at flemings.com wrote:


>But what the hell are "risk assets"? (more related to the original
>question). It's shorthand for "Risk Weighted Assets" When you're
>reviewing a bank's accounts as a regulator, you take the assets, and then
>"weight" them according to a set of rules based on the following:
>
>Zone A government bonds (basically OECD members who have not rescheduled
>debt in the last five years) -- 0% (hence Doug's comment)

Yeah. I thought Michael Pollak's original question was what counts as riskless assets, not what constitutes bank capital. Which is why I said government bonds.

Doug



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