# Capital adequacy

`kaal:entity:capital-adequacy`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `capital-adequacy`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 2 works, 2016 to 2019.

**2016**

- [2714974-032](https://wulfkaal.github.io/claims/2714974-032) [mechanism/argued] -- Indirect regulation through bank capital adequacy standards can reach systemic risk because those standards alter not only banks' credit standards but also counterparty credit risk and therefore hedge funds' level of leverage.
  > Indirect regulation through capital adequacy standards could also address issues of systemic risk because capital adequacy standards will not only regulate and alter credit standards of banks, but also counterparty credit risk and, thus, hedge funds' level of leverage.
  Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974

**2019**

- [3405660-027](https://wulfkaal.github.io/claims/3405660-027) [design/argued] -- The Basel framework serves indirect hedge fund regulation by aligning regulatory capital requirements more closely with underlying risks and by giving banks and supervisors several options for assessing capital adequacy.
  > The Basel framework aligns regulatory capital requirements more closely with underlying risks, and provides banks and their supervisors with several options for the assessment of capital adequacy.
  Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660
- [3405660-028](https://wulfkaal.github.io/claims/3405660-028) [empirical/argued] -- Basel II was at least partly motivated by the LTCM rescue and the 1998 market turbulence, so it responds to the same concerns that animate hedge fund regulation.
  > Accordingly, Basle II was, at least partly, motivated by the events surrounding LTCM and, therefore, by the same concerns and problems.
  Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/capital-adequacy.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.