Banks make the transition to new capital requirements

Banks have adopted quite well to the new risk-based capital regulations imposed on them by the Basle Accord and the FDIC Improvement Act. Profitability has reached record highs, with banks in the Eleventh Federal Reserve District earning ROAs of more than one percent in each quarter of 1992. Trouble...

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Bibliographic Details
Published in:Financial industry studies (Dallas, Tex.) Tex.), 1993-03, p.1
Main Author: Klemme, Kelly
Format: Article
Language:English
Subjects:
Bank Profitability
Banks
Profitability
Regulations
Return on assets
Risk-based Capital
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Summary:Banks have adopted quite well to the new risk-based capital regulations imposed on them by the Basle Accord and the FDIC Improvement Act. Profitability has reached record highs, with banks in the Eleventh Federal Reserve District earning ROAs of more than one percent in each quarter of 1992. Troubled assets have declined, and there has been a small reduction in the number of bank failures. Adjustments by U.S. banks have led to an increase in their overall capital adequacy.
ISSN:1526-4076