1. Why do the bank regulators set capital standards for commercial banks, and illustrate with the capital requirements in Vietnam’s banking system?

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02-08-2021
Business

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1. Why do the bank regulators set capital standards for commercial banks, and illustrate with the capital requirements in Vietnam’s banking system?

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stone254 stone254 · Answer 1 · 2021-08-02T04:54:52-04:00

stone254 stone254

02-08-2021

Answer:

Because banking is such an important part of the economy, regulators have established minimum required levels of bank capital, generally requiring more capital if the bank is larger or is riskier, though exactly what counts as capital these days, and how size and risk are measured, becomes quite complex.

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1. Why do the bank regulators set capital standards for commercial banks, and illustrate with the capital requirements in Vietnam’s banking system?

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