Banks capital adequacy ratios were set globally, and, once set, remained fixed.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined.

That said, the ratio of capital formation does require careful monitoring.

Pick any indicator trade relative to global GDP, capital flows relative to the global capital stock, and so forth all are rising.

Regarding the banking sector, stress tests have been applied since 2004, and a target capital adequacy ratio of 12 has been maintained since 2006.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

European banks, traditionally a major source of trade finance, have pulled back dramatically, owing to capital adequacy problems caused by sovereign debt capital losses and, in some cases, losses from real estate lending.

Because of the capital utilization effect, the capital labor ratio would not, in fact, decline, and hence there would be no significant effect on the marginal productivity of hours worked.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically. This would enable capital buffers to be created in good years, which could then be drawn down in bad years.

Also driving China s high investment rate is the declining efficiency of investment capital, reflected in China s high incremental capital output ratio (annual investment divided by annual output growth).

For instance, we know that the global capital adequacy requirements produced by the Basel Committee reflect overwhelmingly the influence of large banks.

Indeed, ignorance about what is actually at risk makes debates about the right formula for capital buffers surreal. Moreover, the use of mechanistic rules to determine capital adequacy has also inadvertently encouraged systemic imprudence.

Moreover, the use of mechanistic rules to determine capital adequacy has also inadvertently encouraged systemic imprudence.

The decline has occurred because, relative to population growth, fixed capital investment, knowledge and skills, and improvements in institutions have not compensated for the degradation of natural capital.

Initial capital

As above, firm value is enhanced when, and if, the return on capital exceeds the cost of capital.

The Art of Capital Flight

Damming Capital

The Capital Flow Conundrum

Capital flows and remittances

E. Financial capital and resilience

The portion of capital inflows that is not re exported represents net capital inflows.

In a growth mechanism where the external oil windfall component weakens, the internal component, which is dependent on higher productivity, technology and an adequate articulation between physical and human capital, would be best employed in offsetting the fall in oil rents.

They calculated that 75 to 80 of economic growth did not come from increasing the capital output ratio at least not if the private marginal product of capital was taken as an indicator of the social marginal product.

The Siren Song of Capital Controls

Investment and private flows

(o) Working Capital Fund

They are better at adjusting to external economic shocks (such as terms of trade declines or sudden stops in capital inflows).

Brazil has been aggressive in terms of capital restrictions, twice increasing its tax on financial inflows.

If the eurozone maintained its investment rate at the level of the pre boom years, there would soon be much more capital relative to the size of the economy. One might be tempted to say So what?

They cannot raise much more capital during the crisis, so, in order to restore capital adequacy, they stop making new loans and call in their outstanding loans, thereby throwing the entire economy if not the entire global economy into a tailspin.

Of course, some discussion of financial sector reform is taking place in a variety of forums, with a gradual consensus building around sliding or incremental capital adequacy rules.

But, while that figure is down now to about 30 , rural education has continued to suffer from inadequate funding and human capital relative to urban, industrializing regions.

व श व क प ज क र ख फ र ट यर क ओर

Jacqueline Novogratz on patient capitalism

The reason lies in capital movements.

Finally, there is the path of public capital.

Surviving the Great Capital Flood

Raising capital is expensive.

The Temptation of China s Capital Account

List of tables

Before World War II, venture capital investments (originally known as development capital ) were primarily the domain of wealthy individuals and families.

This is why equity capital held by financial institutions typically is more than twice as expensive as debt capital and why these institutions try to minimize its use.

Moreover, Li has called upon the banking sector to reinvigorate idle capital and allocate incremental capital more effectively.