DOI: 10.11118/978-80-7701-042-9-0096

THEORETICAL APPROACH OF CAPITAL ADEQUACY IN INVESTMENT BANK: REGULATION, RISK AND MANAGEMENT

Máté Neményi¹, Rania Boukhchim², Gergő Thalmeiner^3,, Zoltán Zéman⁴

¹ Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Páter Károly Str. 1, H-2100 Gödöllő, Hungary

² Institute for Rural Development and Sustainable Economy, Hungarian University of Agriculture and Life Sciences, Páter Károly Str. 1, H-2100 Gödöllő, Hungary

Department of Investment, Finance and Accounting, Hungarian University of Agriculture and Life Sciences, Páter Károly Str. 1, H-2100 Gödöllő, Hungary

⁴ Doctoral School of Management and Business Administration, John von Neumann University, Infopark sétány 1, HU-1117 Budapest, Hungary

This paper has established the evolving role of capital requirements, especially in the light of more stringent regulatory environments and increased use of stress testing. However, there remain huge gaps in the literature, namely in capital adequacy modelling under dynamic conditions and in the interaction between regulatory capital and internal risk approaches The future lies in having progressively more adaptive, institution-specific models of capital solvency that reflect the realities of markets and regulatory needs. Enlarging the theory and evidence upon which capital adequacy is based will be crucial to making investment banks resilient in an environment of economic volati lity and systemic risk.

Keywords: capital adequacy, solvency, investement bank, Basel, risk management

pages: 96-98, online: 2025