Economic Capital What is 'Economic Capital' Economic capital is the amount of capital that a firm, usually in financial services, needs to ensure that the company stays solvent given its risk profile.Economic capital is calculated internally, sometimes using proprietary models, and is the amount of capital that the firm should have to support any risks that it takes.BREAKING DOWN 'Economic Capital' The measurement process for economic capital involves converting a given risk to the amount of capital that is required to support it.The calculations are based on the institution's financial strength (e.g., credit rating) and expected losses.Financial strength is represented by the probability of the firm not becoming insolvent over the measurement period and is the confidence level in the statistical calculation.Most banks use a confidence measurement of between 99.96% and 99.98%, which is the insolvency rate expected for an institution with a AA or Aa credit rating.The firm's expected loss is the anticipated average loss over the measurement period.

Expected losses represent the cost of doing business and are usually absorbed by operating profits.The relationship between frequency of loss, amount of loss, expected loss, financial strength and economic capital can be seen in the following graph:Performance Measures Using Economic CapitalEconomic capital is used for measuring and reporting market and operational risks across a financial organization.Economic capital measures risk using economic realities rather than accounting and regulatory rules, which have been known to be misleading.As a result, economic capital is thought to give a more realistic representation of a firm's solvency.Calculations of economic capital and their use in risk/reward ratios reveal which business lines a bank should pursue that maximize the risk-reward trade-off.Performance measures that utilize economic capital include return on risk adjusted capital (RORAC), risk adjusted return on capital (RAROC) and economic value added (EVA).Business units that perform better on measures like these can receive more of the firm's capital in order to optimize risk.

Value-at-risk (VaR) and similar measures are also based on economic capital and are used by financial institutions for risk management.Example of Economic CapitalA bank wants to evaluate the risk profile of its loan portfolio over the next year.Specifically, the bank wants to discern the amount of economic capital needed to absorb a loss approaching the 0.04% mark in the loss distribution corresponding to a 99.96% confidence interval.bitcoin esempiThe bank finds that a 99.96% confidence interval yields $1 billion in economic capital in excess of the expected (average) loss.bitcoin error reading from databaseIf the bank had a shortfall in economic capital, it could take measures such as raising capital or increasing the underwriting standards for its loan portfolio in order to maintain its desired credit rating.bitcoin echeck

The bank could further break down its loan portfolio in order to evaluate if the risk-reward profile of its mortgage portfolio exceeded its personal loan portfolio.Vulcan Post3 February 2015It’s official: online gambling sites have been shut out as of Monday, February 2.Thanks to the Remote Gambling Act passed in October last year, gambling through remote communication — such as websites or mobile apps — has been made illegal.Access to several hundred gambling sites has been blocked off to Singaporeans, and anyone who breaks this law may be fined up to S$5,000 and/or jailed up to six months.A representative from the Ministry of Home Affairs (MHA) said to TODAY: “The MHA and the Media Development Authority are working with Internet service providers (ISPs) to ensure that the blocking of websites is implemented smoothly.”The Act doesn’t just include the websites themselves — advertisements and promotions are also illegal, and any websites found with offending materials will be served notices to remove them.According to Channel NewsAsia, regular visitors to some gambling websites found themselves unable to withdraw money that they had deposited into the sites.The MAS has also ordered all licensed banks, card issuers, stored value facilities and operators of payment systems under the Payment Systems (Oversight) Act to block payment orders and fund transmissions from or to remote gambling services.There could be an exception, however.

Local gambling operators Singapore Pools and Singapore Turf Club will be applying for exemptions from this law, as they currently allow registered customers to place bets via smart devices.Should they fail to get authorisation, they have six months from Monday to stop remote gambling operations.The Games ContinueWith a quick Google check, it’s easy to see that popular sites like bet365 and ibcbet have been blocked.But with a little digging, we found that there are some websites that are still accessible, though it’s possible that they will be blocked soon.Luckily, online games with in-game payments like Candy Crush are still allowed.Initially a concern for many casual game players, it was clarified last week that games that don’t provide rewards exchangeable for money will not be covered by the Act.But perhaps we should just stick with the annual Chinese New Year gambling instead.A few dollars in a game of blackjack between family members couldn’t hurt.Also Read: Counsellors Say Facebook Gambling In S’pore May Cause Actual Gambling AddictionThe post Remote Gambling Officially Banned In Singapore, Websites Only Partially Blocked appeared first on Vulcan Post.

How does this game compare to Scholar of the first sin?Posted 27 December 2012 - 11:41 AM that stretch only allow 70 was driving 10+-11+ late night less car... so increase speed a little.but after that incident... whenever i reach that particular bend, i slow down to 70-80... Posted 27 December 2012 - 11:54 AM What about the speed humps at Checkpoint.They've been worn down to nothing about a car wheels distance apart and have been like that for at least a year.Not that I'm really complaining as it makes driving over them easy.But if the bumps aren't needed why not remove them entirely.Bro, they heard others before they heard you, all have been replaced, nice and high now..... Posted 27 December 2012 - 12:16 PM Posted 27 December 2012 - 01:01 PM I have notice nowadays polehole very serious, esp on certain road.Even reported and the pothole repaired, after a while the potholes come back again.Wondering it is due to the poor QC check?!it could be due to the poor quality of materials used Posted 27 December 2012 - 01:23 PM Another pothole at Central too just before the bus interchange when coming from Henderson Rd.

Edited by Chiawy, 27 December 2012 - 01:23 PM.Posted 27 December 2012 - 03:27 PM usually i slam the authority for being inefficient, but i have to disagree with this topic about repairing of potholes on the roadshaving driving frequently to Malaysia, i do appreciate LTA for regularly maintaining the roads in Singaporethe potholes i encountered are usually repaired within several daysin MY, the potholes stayed on for months Edited by Scion, 27 December 2012 - 03:28 PM.Posted 27 December 2012 - 03:35 PM bloody hell who is the dept in charge of potholes?small island cant keep the road in proper order.Saw motorcycle almost buang because of big pothole.have experienced numerous pot holes all over the island.so hard to maintain the road?nb malaysia also less occurence than in sgp.near nuh even better.3 lanes all filled with leftover cement for months and no one bothers.did you call and tell them?if you did, usually few days settle liao... Posted 27 December 2012 - 03:39 PM usually i slam the authority for being inefficient, but i have to disagree with this topic about repairing of potholes on the roads having driving frequently to Malaysia, i do appreciate LTA for regularly maintaining the roads in Singapore the potholes i encountered are usually repaired within several days in MY, the potholes stayed on for months Yes, I agreed with you.

The potholes here normally get repaired within days.Whether it last or not, that's another story.Sometimes we can do a part by feedback to LTA.Here: http://talk2lta.lta.....CreateFeedback I feedback once about uneven roads at Still road and true enough, they repaired the road after finishing all the laying of cables.Posted 27 December 2012 - 03:40 PM To be fair, I noticed that potholes in.Singapore are repaired relatively fast.On the usual routes which I travel almost every day, potholes don't stay more than a week.LTA do rely on the public to report and inform, just like the police, you cannot expect them to be everywhere.For MY, I have seen a pothole in JB which is not repaired for years.usually i slam the authority for being inefficient, but i have to disagree with this topic about repairing of potholes on the roads having driving frequently to Malaysia, i do appreciate LTA for regularly maintaining the roads in Singapore the potholes i encountered are usually repaired within several days in MY, the potholes stayed on for months Posted 27 December 2012 - 03:41 PM usually i slam the authority for being inefficient, but i have to disagree with this topic about repairing of potholes on the roads having driving frequently to Malaysia, i do appreciate LTA for regularly maintaining the roads in Singapore the potholes i encountered are usually repaired within several days in MY, the potholes stayed on for months thks to those who advised on calling lta.

i will do so henceforth when i spot any.i was hoping lta could help out as well.perhaps some patrol ppl looking for potholes?they r pretty rich and can afford that i think.but thats another story for another day.this issue did not affect me myself.i witnessed a horrid accident that couldve been avoided and felt the need to highlight.i hope we all do our part to help make the road safer for all motorist.Posted 27 December 2012 - 04:24 PM Posted 27 December 2012 - 04:28 PM usually i slam the authority for being inefficient, but i have to disagree with this topic about repairing of potholes on the roads having driving frequently to Malaysia, i do appreciate LTA for regularly maintaining the roads in Singapore the potholes i encountered are usually repaired within several days in MY, the potholes stayed on for months You are right about MY.I can memorise the pothole locations in Melaka.But having said that, I notice the road maintnenance standard here has slackened.

There are really many potholes around that has not been repaired.One thing for sure, those potholes along Thomson.Tanglin Bukit Timah, River Valley, Serangoon(near KK hospital) will disappear very fast.... Posted 27 December 2012 - 04:34 PM .Posted 27 December 2012 - 05:16 PM Twice this year i almost died because my hit into a pothole.Both times i count myself lucky that i ended up with 0.3sec of airtime and subsequently $200 in damaged .Can i sue LTA?Or ask that Tuck Yew to reimburse me?Really can Posted 27 December 2012 - 05:46 PM Twice this year i almost died because my hit into a pothole.write to him and get a reply Posted 27 December 2012 - 07:21 PM Posted 27 December 2012 - 07:46 PM Are they driving lexus?Later is Rolls Royce.Feel nothing over potholes.Posted 27 December 2012 - 07:58 PM Twice this year i almost died because my hit into a pothole.Just need to have the exact location of the pothole, pics of the pothole and all the measurements of it.

Must include pics of the damage on ur as well.Posted 27 December 2012 - 09:26 PM Major roads r all mantain by Lta.Unless hdb carparks are mantain by hdb.It's their fault for not getting enough contractors to repair the potholes or bullying contractors or using low low grade asphalt therefore the roads degrade.There are few reasons why the backfill / re-surfacing are poorly done after digging up the road for whatever reasons, sometimes resulting in the potholes (dangerous for road users):- LTA appoint contractors to do such work based on technical specifications.If the specifications are screwed up eg badly written by LTA, the contractors who follow the spec will produce the lousy work as mentioned here.Or, if the specificaitons is well written, yet the LTA supervisors on the ground close an eye in his supervision for whatever reasons, we get the same results.Someone has to check which case it is?Do the senior guys in LTA actually drive on these roads to check if the work is ok?