The calculation of minimum capital takes account of the risks arising from exposures to foreign exchange rate and interest rate movements. Many of these measures are also relevant for larger non-bank firms. For other firms, the emphasis is more specifically tailored to the nature of their business and, where appropriate, requirements in relation to client money are included in the quantitative techniques.
Qualitative assessment is by its nature more subjective. However, an informed basis for qualitative judgements, particularly as regards corporate policy and its implementation, is provided by having access to an institution’s books, records and key personnel at regular review meetings and in the course of on-site inspections.