Banking

The Bank is an institution that have a banking license, accept deposits, provide loans and receive checks & publish.
Financial Services company is an institution that offers financial products to customers such as pension funds, insurance or bonds. Bank, including financial services company.
Risk is the possibility of a loss / natural / results of the ugly (bad outcome) so is the risk of situations that produce negative things and the results can be predicted in advance.
Two terms related to risk:
Risk Event is an occurrence that causes damage or potential for bad outcome.
Risk Loss is loss (financial or non-financial) that occurred as a result of the direct / indirect risk from the event.
Financial services industry is set to protect customers and increase trust in their products so that products are regulated.
Unlike the bank, which is regulated banking institutions themselves, not only the products and services offered. This difference was due to the failure of a bank will give the impact of the old and in to the economy.
Unlike other industries, the bank is not free to determine their capital structure. Capital structure / capital structure is how a bank finance the business, generally through a combination of issuing shares, bonds and loans.
Capital structure is determined by a bank supervisors bank (BI) that determines the minimum capital and minimum level of liquidity that must be owned by banks, as well as the type and structure of loans granted.
When a bank has sufficient capital, banks have financial resources / liquidity is sufficient to mengcover financial losses, so the bank can finance the assets and meet its obligations at maturity. Note: The minimum capital requirement ratio of = Regulatory capital to RWA (BI → ATMR x 8%).
Basel focuses on banking regulation and not in the financial industry as a whole.
Bank must be set as: 1) the risks inherent in the operational activities; 2) offers of money, so that 3) the failure of a bank (total or partial) can cause a "systemic risk".
Systemic risk is the risk of a bank failure which can destroy the economy and the impact on employees, customers and shareholders.
Solvency of a concern not only the bank's shareholders, customers and employees, but also all those responsible for managing the entire economy.
Term systemic risk are closely tied to 'run on a bank' which occurs when the bank can not cover their obligations, ie does not have enough cash to pay for the deposannya. The failure of a bank is not necessarily a reality, but can also be a perception (rumor) from some customers.
Before the year 1930-an, 'run on banks' solvency problem and often occurred (last year occurred in 1933 in the USA and the UK in 1957), causing the government control the banks through regulation to ensure that banks have capital and adequate liquidity.
Bank supervisors must ensure that the bank may:
Meet the obligations of the depositor without requesting borrowers pay off loans
Maintain a reasonable level of losses caused by 'poor lending' or declining economic activity, for example, due to economic recession
Initially the capital of a bank associated with the percentage of the loan. Akan but this way there is a 'missing link' in calculating the appropriate level of capital as
In other words' of lending economic 'is a balance between the' margin 'and the losses that might occur → less risk - less margin.
So 'missing link' is over the amount of risk that is owned by a bank.