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It required banks to set aside capital against such contingencies.
What do they hold as capital against such risks?
That, however, would mean tying up precious capital against an uncertain future.
At present, banks set a fixed ratio of capital against so-called risk assets.
Some countries also allow banks to set aside only 4% capital against their mortgage portfolios.
Banks do not have to hold capital against government bonds to absorb losses.
Yet this has been the remit of decades of government support for strengthening capital against labour.
Bank regulators allowed banks to carry less capital against AAA-rated securities.
These rules are complicated but, in general, require banks to hold more capital against their loans.
The Moody's downgrade required the company to put up more capital against certain businesses, reducing its returns.
A group of conservatives protested in Riyadh, the capital, against "Westernising" moves that would lead to adultery and prostitution.
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CEO of Professional Science Editing for Scientists @ prosciediting.com