Hints and tips:
...Where it says, “This transaction will result in a significant decrease in the regulatory capital charge associated with current asset holdings, boosting RAROC” replace with “The economic fundamentals of...
...an effort to better manage risk, the firm has been pouring a lot of money into its Management Information System since the middle of 2007 in order to effectively track Risk Adjusted Return on Capital (RAROC...
...At the other end, considering Raroc for individual transactions, as bank lending divisions often do, could be prohibitively slow in a trading environment....
International Edition