tailieunhanh - The Supervisory Capital Assessment Program: Overview of Results

Two types of bills currently exist on the Serbian financial market: T-bills issued by the Ministry of Finance of the Republic of Serbia, and NBS bills, issued by the National Bank of Serbia. The main idea behind these financial instruments is to facil- itate the development of the financial market in Serbia. This is in accordance with the monetary policy of the National Bank of Serbia, but also an important aspect of the economic restructuring program. Nevertheless, both types of bills are currently trad- ed only on the primary market. Both securities are used as instruments for regulat- ing money supply. In order to accumulate additional funds, the. | The Supervisory Capital Assessment Program Overview of Results May 1 2009 Board of Governors of the Federal Reserve System The Supervisory Capital Assessment Program Overview of Results May 7 2009 introduction ono Summory A banking organization holds capital to guard against uncertainty. Capital reassures an institution s depositors creditors and counterparties--and the institution itself that an event such as an unexpected surge in losses or an unanticipated deterioration in earnings will not impair its ability to engage in lending to creditworthy borrowers and protect the savings of its depositors. During this period of heightened economic uncertainty . federal banking supervisors believe that the largest . bank holding companies BHCs should have a capital buffer sufficient to withstand losses and allow them to meet the credit needs of their customers in a more severe recession than is anticipated. For this reason the Federal Reserve and other bank supervisors embarked on a comprehensive simultaneous assessment of the capital held by the 19 largest . BHCs in February of this year. This unprecedented exercise-known as the Supervisory Capital Assessment Program SCAP -allowed supervisors to measure how much of an additional capital buffer if any each institution would need to establish today to ensure that it would have sufficient capital if the economy weakens more than expected. Those BHCs needing to augment their capital coming out of this assessment will have a month to design a detailed plan subject to supervisory approval for the steps they will take to put the SCAP buffer in place and then implement that plan by early November of this year. The unprecedented nature of the SCAP together with the extraordinary economic and financial conditions that precipitated it has led supervisors to take the unusual step of publically reporting the findings of this supervisory exercise. The decision to depart from the standard practice of keeping examination .