>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