Since 1999, the RMA Capital Working Group has been conducting research to demonstrate to the Base! Committee how best-practice institutions estimate and assign economic capital. RMA believes that the 1988 Capital Accord should be revised to align regulatory capital with economic capital. RMA's research supports this goal. The group 's latest paper focused on retail products and is summnarized below. The complete paper and supporting data can be found on RMA's Web site.

Three broad types of economic capital (EG) estimation processes are used by the 12 banks participating in this survey:

1. EL-sigma approaches.

2. A structural model that directly employs loan default correlations (LDCs).
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