Capital Adequacy Principles paper - Bank for International ...

4 Capital AdequacyPrinciplespaper5 Capital Adequacy PrinciplesObjective1. To provide banking, securities and insurance supervisors with Principles and measurementtechniques (a) to facilitate the assessment of Capital Adequacy on a group-wide basis forheterogeneous financial conglomerates; and (b) to identify situations such as double ormultiple gearing which can result in an overstatement of group Capital and which can have amaterial adverse effect on the regulated financial entities. The Principles and measurementtechniques put forward in this paper do not replace existing sectoral rules and of Principles2. Supervisors should assess the Capital Adequacy of financial conglomerates. In so doing,measurement techniques should be designed to:I. detect and provide for situations of double or multiple gearing, where thesame Capital is used simultaneously as a buffer against risk in two or morelegal entities;II.

5 Capital Adequacy Principles Objective 1. To provide banking, securities and insurance supervisors with principles and measurement techniques (a) to facilitate the assessment of capital adequacy on a group-wide basis for

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  Principles, Capital, Insurance, Adequacy, Capital adequacy, Capital adequacy principles

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