Ishikawa, Tatsuya; Yamai, Yasuhiro; Ieda, Akira - In: Monetary and Economic Studies 21 (2003) 3, pp. 83-105
In this paper, we consider the risk capital framework adopted by financial institutions. Specifically, we review the recent literature on this issue, and clarify the economic assumptions behind this framework. Based on these observations, we then develop a simple model for analyzing the economic...