Journal Article

When gauging bank capital adequacy, simplicity beats complexity


Abstract: It is unclear whether ratio complexity enhances the ability to identify failure and is better than a simpler ratio. But a simpler ratio offers the benefits of greater transparency and accountability.

Keywords: Risk assessment;

Access Documents

File(s): File format is application/pdf https://fraser.stlouisfed.org/title/6362/item/607678
Description: Full text

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Economic Letter

Publication Date: 2013-04

Volume: 8

Issue: 2