Cryptocurrency Q&A What is the 100-300 rule in banking?

What is the 100-300 rule in banking?

MountFujiMysticalView MountFujiMysticalView Thu Sep 19 2024 | 5 answers 1423
Can you explain the concept of the 100-300 rule in banking? How does it work and what are the implications for financial institutions and customers alike? Is it a universally accepted principle or does it vary depending on the specific context? What is the 100-300 rule in banking?

5 answers

TaegeukChampionCourageousHeart TaegeukChampionCourageousHeart Sat Sep 21 2024
The regulatory framework for banks encompasses stringent criteria aimed at assessing their risk profiles.

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KpopHarmonySoulMate KpopHarmonySoulMate Sat Sep 21 2024
A pivotal aspect of this evaluation revolves around two distinct thresholds that banks must not surpass.

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AzureWave AzureWave Sat Sep 21 2024
Firstly, banks are scrutinized for their CRE (Commercial Real Estate) loan portfolios, with a particular emphasis on those exceeding 300% of their risk-based capital levels.

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Giulia Giulia Fri Sep 20 2024
Moreover, the growth rate of these CRE loans over the preceding 36 months is also under the microscope, flagging any increase surpassing 50% as a cause for concern.

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Federico Federico Fri Sep 20 2024
Secondly, the regulatory lens also focuses on construction (C&D) loans, specifically those that represent at least 100% of a bank's risk-based capital.

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