Effective capital allocation methods can reduce banks' risk and increase profits, the Office of the Comptroller of the Currency said Tuesday.

From a survey of 10 large national banks, the agency concluded that institutions developing internal models to allocate capital among their business lines gain a better sense of each area's risk and profitability.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.