Dow will drop 50% as market replays 2008, 2000 and 1929. Crowd of people gather outside the New York Stock Exchange following the Crash of 1929. Itâs time to start the countdown to the crash of 2016. No, this is not a prediction of a minor correction. Plan on a 50% crash.
Capital requirement (also known as regulatory capital or capital adequacy) is the amount of capital a bank or other financial institution has to hold as required by its financial regulator.This is usually expressed as a capital adequacy ratio of equity that must be held as a percentage of risk-weighted assets.These requirements are put into place to ensure that these institutions do not take on excess leverage and become insolvent.his is usually expressed as a capital adequacy ratio of equity that must be held as a percentage of risk-weighted assets. These requirements are put into place to ensure that these institutions do not take on excess leverage and become insolvent.
Risk-Based Capital Definition: Risk-based capital (RBC) represents an amount of capital based on an assessment of risks that a company should hold to protect customers against adverse developments.Overview RBC is used in both the banking and insurance industries.BC is usually expressed as a risk based capital ratio. This is the total capital of the company (as determined by the RBC formula) divided by the companyâs risk-based capital (as determined by the formula).