from Moscow State University and has published on Europe’s Problem Loans, Analytical Tools for Crisis Vulnerability Assessment, and on Emerging Markets as Net Capital Exporters. Franz Nauschnigg: As of 2000, Mr. Nauschnigg is the Head of the OeNB’s European Affairs and International Financial Organizations Division.
But that is not the full extent of the gap. Economic capital is calculated on the basis of expected losses. To the extent minimum capital requirements are set consistent with economic capital, unexpected losses will not be borne by bank shareholders.