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Consolidated Supervision - World Bank

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<strong>Consolidated</strong> <strong>Supervision</strong><br />

Risk-Based Deduction<br />

▼<br />

▼<br />

▼<br />

▼<br />

▼<br />

Uses unconsolidated statements<br />

From parent's capital deduct the amount of<br />

investments in dependants<br />

From adjusted parent's capital add solo capital<br />

surplus/deduct solo capital deficits of dependants<br />

From adjusted parent's capital subtract parent's<br />

solo capital requirement<br />

Result: surplus or deficit<br />

Basel Committee on <strong>Bank</strong>ing <strong>Supervision</strong><br />

33

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