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HAN Zhen. Coherent Capital Allocation Method -Value MethodJ. Journal of Beijing Institute of Technology (Social Sciences Edition), 2009, (4): 77-79.
Citation: HAN Zhen. Coherent Capital Allocation Method -Value MethodJ. Journal of Beijing Institute of Technology (Social Sciences Edition), 2009, (4): 77-79.

Coherent Capital Allocation Method -Value Method

  • Capital allocation plays a more and more important role in banking risk management. This paper begins with the introduction of the characters of value method with its utility in solving the bankruptcy problem, then investigates the feasibility of application of value method in credit risk capital allocation in banking system. At the end of the paper, value method is proved to be coherent in risk capital allocation.
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