| capital at risk 1) An element in the calculation of the capital requirements of a bank, under the system that was put in place by the Basle Convergence Accord See: Cooke ratio.2) A measure of worst-case losses in excess of the average that is used in banking to calculate both capital requirements and certain performance measures, such as risk-adjusted return on capital (RAROC). It is usually based on the value-at-risk methodology. |