economic-capital

1.31 Could you please explain the purpose of economic capital, why isn't is to absorb unexpected loss and tail loss?

I apologize in advance if this is not the right post. A quick question about EVA (Economic Value Added). Study notes Crouhy, Page 17 - it is defined as : EVA (economic value added), or NIACC (net income after capital charge), is the after-tax adjusted net income less a capital charge equal to...