Home  Journals  Finance and Credit  1(433) - 2011 January

The credit risk and the equity capital of a bank

Available online: 18 January 2011

Subject Heading: CREDIT RISKI

JEL Classification: 

The commercial bank develops and realizes the bank policy taking into account interrelations of its various financial components as much as possible. In the article are researched the financial mechanisms of the mutual influence of the credit risk and the capital of the bank. It is made the conclusion that the maximal diversification of the credit portfolio interferes with the concentration of the credit risk and reflects positively in the equity capital of the bank.

Keywords: the equity capital, the bank credits, the credit risk of the bank, the sufficiency of the equity capital, Basel III

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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