The latter drop in both the estimated 90th percentile and corresponding upper limits below 10 MPN/100 mL suggest the potential for relaxing the closure rule
for this area.
The problem with this sort of closure rule
is that there must be a reliable system to measure capital.
In each table, we examine three closure rules
, namely, [alpha] = 1.
So that the closure rule
is not breached without sufficient warning, and to attempt to prevent a troubled bank from deteriorating further down to the closure trigger, PCA imposes a number of other triggers, generally calibrated in terms of capital ratios, at which time the regulators first may, and then must, impose sanctions to increase the cost of poor performance to the banks.
Consider, however, the effect of the closure rule
on the informed agents' trading strategies.
The comparison of the results of exercises under two different sets of closure rules
, as Dhanani has done, does not resolve the issue about which closure rule
If any data points fall within the false-negative zone, the rainfall closure rule
should be tightened to remove these false negatives.
In other countries, excessive attention to Basel has reduced the focus on developing meaningful PCA-type provisions to turn troubled institutions around before insolvency and to resolve them quickly and at least cost when they decline through the minimum capital ratio specified in the closure rule
The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991 introduced a "bright line" bank closure rule
that is triggered when the ratio of book-value tangible equity capital to total on-balance-sheet assets declines to a minimum of 2 percent.
During the 2013 legislative session, the strengthened closure rules
were a selling point for lawmakers who had otherwise opposed legislation that expanded the number of charter contracts the state can award.
BRUSSELS, June 22 (KUNA) -- EU finance ministers early on Saturday broke up their 18-hour meeting without an agreement on bank closure rules
With climate change, maybe the DCR should re-examine some old closure rules
that appear to many rather arbitrary today.