An Additional capital requirements based on the domestic systemic importance of a bank
In: CNB Financial Stability Report 2012/2013
This article is concerned with the regulation of banks on the basis of theirdifferent degrees of systemic importance. It proposes a specific approach to calculating a bank's systemic importance to the domestic banking sector. The article goes on to propose a method for assessing the additional capital requirement for a bank based on the estimated cost impacts of failure of the bank on the Czech financial sector and the economy as a whole. The proposed approach is used to obtain systemic importance scores and capital buffers for individual banks in the Czech Republic. According to the calculations, the highest capital buffer is 4%. However, a non-zero capital buffer should not be interpreted as a signal that the bank is too big to fail and would therefore be guaranteed a public bail-out if it got into difficulties.
|This chapter was published in: Michal Skorepa & Jakub Seidler CNB Financial Stability Report 2012/2013, , chapter Thematic Article 1, pages 96-102, 2013.|
|This item is provided by Czech National Bank, Research Department in its series Occasional Publications - Chapters in Edited Volumes with number fsr1213/1.|
|Contact details of provider:|| Postal: Na Prikope 28, 115 03 Prague 1|
Phone: 00420 2 2442 1111
Fax: 00420 2 2421 8522
Web page: http://www.cnb.cz/en/research/research_intro/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jakub Seidler, 2008. "Implied Market Loss Given Default: structural-model approach," Working Papers IES 2008/26, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2008.
- Zlatuse Komarkova & Vaclav Hausenblas & Jan Frait, 2012. "How To Identify Systemically Important Financial Institutions," Occasional Publications - Chapters in Edited Volumes,in: CNB Financial Stability Report 2011/2012, chapter 0, pages 100-111 Czech National Bank, Research Department.