Should a firm consider subordinated loans as part of its capital?
Typically, firms rely on capital injections as equity or the retention of profits to meet their obligations under FCA capital adequacy requirements. However, in some situations the owners of the business may prefer to lend money to the company. What is a Subordinated Loan? A subordinated loan is a debt instrument where the lender’s claim […]
ICARA – tips for getting it right
The purpose of the Internal Capital And Risk Assessment (ICARA) is for firms to identify in a joined-up and consistent way their position in terms of own funds, liquid assets, wind-down planning, and stress testing. The key is identifying and understanding the risks facing a business and the harms it could cause by its operations […]