Sentences with phrase «loss bearing capacity»

Not exact matches

It's well known, for example, that banks would choose to have too little capacity to absorb losses — too little equity capital — because their current shareholders don't bear the full economic costs of their failure or distress.

My view is that there are a small number of greedy players that hold most of the credit risk from subprime mortgages, and that their ultimate owners have enough capacity to bear losses that there is no significant contagion risk to the debt and equity markets, even if some players are wiped out, and the banks take modest losses.

[107] Bearing in mind the applicable legal principles, including the Brown criteria, in light of the evidence and weighing the pertinent contingencies, I conclude that the sum of $ 120,000 is the present value of a fair and reasonable measure of Ms. Suthakar's loss of future income - earning capacity.

This allows them to charge premiums that the market will bear, while still maintaining the capacity to pay claims in a large - scale loss.