Rules for establishing minimum required levels of book capital for financial institutions. Capital is allocated to types of bank assets based upon weightings assigned to those assets. For example, U.S. Treasury obligations and some U.S. Agency obligations require no capital. Most other U.S. Agency obligations are given a 20 percent weighting for the purpose of calculating risk-based capital. Corporate obligations have a 100 percent weighting. American Banker Glossary
Financial and business terms. 2012.