BCBS 0 D
Treatment of minority participations in the consolidation of banks' balance sheets.
In October 1978 the Committee on Banking Regulations and Supervisory Practices submitted a report to the Governors of the Group of Ten countries and Switzerland on the consolidation of banks' balance sheets as a method of supervising bank solvency. While concluding that the capital adequacy and risk exposure of banks and their affiliates can most satisfactorily be monitored on the basis of consolidation of risk assets, the paper mentioned a number of operational difficulties in stipulating which interests should be consolidated and in what proportion. Attention was drawn to the treatment of less than wholly-owned interests and it was stated that the question was on the future agenda of the Committee. The purpose of this note is to summarise the points of agreement that emerged from the subsequent discussion as well as those areas where there are differences of opinion.
- Publication Date: November 1979
- Publication Type: Other
- Publication Status: Superseded
- Publication Category: Cross-Border Issues
- Number of Pages: 3
- Keywords: Definition Of Capital
For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.
The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).