Part VI Bank Group Supervision, 25 Financial Conglomerates
- Regulation of banks — UK Financial Services Authority (FSA)
25.01 The Joint Forum on Financial Conglomerates released in 1999 a paper which sets out the basis of the supervision of conglomerates,1 and the basic principles set out in this paper remain the basis for conglomerate supervision. They are that supervisors should seek to assess the capital adequacy of financial conglomerates. In so doing, measurement techniques should be designed to: Each of these merits a word of explanation. 25.02 Double gearing occurs when the same capital is counted twice. It is worth noting that the simplest form of double gearing would occur...