...Jeremy Scott The calculation of economic capital in its entirety has, until recently, been complex. But increasingly it has become a risk‐management system across entire groups. The author looks at how it can be done and analyses the advantages it creates. 1. (1) To ensure a safe level...

... methods for relating risk to capital, similar to the framework outlined in the recommendations. Looks at applications of economic capital and explores how these can be used to improve management decision making. Sums up that the need for financial institutions to design and implement what is required...

...Julian Leake Demonstrates complete overview of risk‐adjusted performance measurement (RAPM) and how it can be a key management tool – particularly when combined with an economic capital allocation framework. Discusses RAPM and how it would enable senior management to allocate economic capital more...

.... Concludes that the Basle approach has real merits with credit being pushed to the limit by firms’ involvement in this system. © MCB UP Limited 2000 Credit Banking Basle Accord Finance Capital BASLE ACCORD The Basle Accord: rethinking credit risk Peter Vipond of the British Bankers...