SOLVENCY CAPITAL AND ITS THEORETICAL IMPACT ON INVESTMENT BANK OPERATIONS
This review article looks more specifically at the concept of capital solvency and its relevance to the investment banks. It considers why solvency capital matters basically as a buffer for financial instability and unexpected losses and how it supports the overall health of financial institutions. This article also determines the need for capital solvency in facilitating the ability of investment banks to manage risk, maintain investors’ confidence, and comply with evolving financial regulations. Key regulatory frameworks, such as Basel I, II and III, are considered to show how they influence the way banks handle capital requirements. Drawing upon a wide range of scholarly literature and regulatory reports, this review provides a succinct overview of the state of the art in capital solvency, its challenges, and how it shapes investment banking practice today.
XIII. ÉVFOLYAM 2025. SPECIAL ISSUES 1. 17-23
DOI: 10.24387/CI.SI.2025.1.3
