It emerged over time that there was an increasing divergence, in terms of both scale and composition, between the capital required by supervisors, i.e. regulatory capital, and economic capital, i.e. the capital held internally by banks which is actually regarded as necessary to cover risks.
It emerged over time that there was an increasing divergence, in terms of both scale and composition, between the capital required by supervisors, i.e. regulatory capital, and economic capital, i.e. the capital held internally by banks which is actually regarded as necessary to cover risks.