Moreover, the use of mechanistic rules to determine capital adequacy has also inadvertently encouraged systemic imprudence.

Global Capital Rules

Banks capital adequacy ratios were set globally, and, once set, remained fixed.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined.

Indeed, ignorance about what is actually at risk makes debates about the right formula for capital buffers surreal. Moreover, the use of mechanistic rules to determine capital adequacy has also inadvertently encouraged systemic imprudence.

Of course, some discussion of financial sector reform is taking place in a variety of forums, with a gradual consensus building around sliding or incremental capital adequacy rules.

None of the major banks met even the Basel 1 standards for capital adequacy.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

40. The adequacy of external capital flows is a major external factor affecting the development prospects of developing countries.

Smarter capital requirements better Basel rules aren t the answer.

The recent agreement by the Basel Committee on Banking Supervision on a new capital adequacy framework is another positive step.

Ensuring housing adequacy

For instance, we know that the global capital adequacy requirements produced by the Basel Committee reflect overwhelmingly the influence of large banks.

Human capital affects the quality of the rules that govern market transactions and the enforcement of these rules.

Assesses the adequacy of arrangements for handling the administration of the Unit in accordance with United Nations and UNEP regulations and rules.

European banks, traditionally a major source of trade finance, have pulled back dramatically, owing to capital adequacy problems caused by sovereign debt capital losses and, in some cases, losses from real estate lending.

Regarding the banking sector, stress tests have been applied since 2004, and a target capital adequacy ratio of 12 has been maintained since 2006.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically. This would enable capital buffers to be created in good years, which could then be drawn down in bad years.

Furthermore, emerging international banking capital adequacy regulations (Basel II), make the credit risks rating of potential borrowers a condition for their access to bank loans.

Capital adequacy was a matter of judgment examiners would figure out how large a buffer a bank ought to have, taking into account its specific risks.

Many eurozone banks have made far less progress in strengthening their capital adequacy and liquidity than have American and British banks since the financial crisis erupted.

(iii) Adequacy of sanctions (article 11)

C. Adequacy of existing international instruments

Relevance and adequacy of existing standards

Assesses the adequacy, efficiency and effectiveness of the roster and determines adherence by the Procurement Division to procurement rules when evaluating applicants and using the roster.

Haldane rightly complained that banking regulation has evolved from a small number of very specific guidelines to mind numbingly complicated statistical algorithms for measuring risk and capital adequacy.

The Basle rules on capital requirements and the World Trade Organization s rules on subsidies, intellectual property, and investment measures typify this kind of overreaching.

They cannot raise much more capital during the crisis, so, in order to restore capital adequacy, they stop making new loans and call in their outstanding loans, thereby throwing the entire economy if not the entire global economy into a tailspin.

But, because publicly traded companies usually have a large amount of capital in place, lax rules would enable insiders to use this capital to their advantage.

(a) The relevance and adequacy of existing standards

Assesses the adequacy of procedures and controls over data input, processing and output, and determines if information processing complies with established business rules and is accurate, reliable and timely.

Even during the crisis, banks capital adequacy ratios were higher than the Basel II requirement of 8 , and their distribution of profits has been under the BRSA s close supervision since 2008.

The accuracy and adequacy of country office annual reports

Keeping those loans on the books would have meant that a bank would have had to incur a large capital adequacy provision and monitor the loans performance, at a cost to itself.

Open capital accounts may be replaced not by whimsical ad hoc interventions that heighten uncertainty and weaken confidence, but rather by predictable rules based constraints on financial capital flows.

To comply with the capital adequacy ratio required by the Bank for International Settlements, most banks in the ESCWA region, especially in the GCC countries, raised their paid in capital, either by resorting to financial reserves or issuing and placing equity shares in the domestic market.

This is why capital account regulations are allowed under IMF rules, and why the attempt to introduce capital account convertibility into the IMF s Articles of Agreement was defeated in 1997.

B. Review of the adequacy of commitments in Article 4,

Work relating to follow up to review of the adequacy

While seven percent of all owners were living below adequacy standards, only two percent of all owners were actually in core housing need while experiencing adequacy problems.

Beyond capital rules, however, monetary policy and financial supervision must cooperate very closely on liquidity management, particularly through credit mechanisms.

(b) The geographic location and adequacy of interpreter pools world wide

Moreover, in October, the IMF is set to release official rules of the road for the use of capital account regulations.

And we should explore whether a system of global rules aimed at reducing the volatility of capital flows would be useful.