What are regulatory capital requirements?

Regulatory Capital. The required Capital is based on risk-weighted assets percentage (RWA), and in most cases, the RWA is 100% ( Loan Products with Special Regulatory Capital Requirements goes into further details about products with non-100% RWA). One factor in determining capital is simply to take the committed and funded value * RWA.

What is the difference between capital and non-capital assets?

In simple terms everything that you own or use for personal or investment purposes can be termed as a capital asset. A non capital asset includes business proper t y.

What is capital/income ratio in economic?

The capital-income ratio increases, by definition, when the rate of return on capital (assuming the return is fully reinvested) is greater than the rate of growth of the economy. This is the famous r > g inequality. If this is the future of the rich world, as Piketty argued, then capital-income ratios will continue to rise.

What is difference between working capital and fixed capital?

Fixed Capital and Working Capital Differences. The primary difference between fixed capital and working capital is that Fixed Capital is the capital which is invested by the company in procuring the fixed assets required for the working of the business whereas working capital is the capital which is required by the company for the purpose of financing its day to day operations.