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.
RegulAtoRy CApitAl RequiRements on the Rise10 Some of the regulatory capital models include an explicit charge for catastrophe risk, most notably Australia, Bermuda, Japan, and Solvency II. This is an area where A.M. Best and S&P have significantly increased capital requirements over time relative to most regulators.egulAtoRy CApitAl RequiRements on the Rise6 eclipse rating agency capital requirements as the primary capital constraints, as these changes are expected to be material and beyond what is being considered under Solvency II and other applied risk-based capital models.