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The rise of KVA: how 10 banks are pricing the capital crunch
As more banks start pricing capital costs – or KVA – into their derivatives trades, questions are multiplying. In the first survey of its kind, global and regional banks give their answers
![risk-0915-kva-image-app risk-0915-kva-image-app](/sites/default/files/styles/landscape_750_463/public/import/IMG/450/326450/risk-0915-kva-image-app.png.webp?h=620208e8&itok=kqTeYSiO)
It is difficult or impossible to hedge, threatens losses for the industry in the multiple billions of dollars, and could force banks to rethink some of their businesses – these are some of the key findings from Risk's survey on capital valuation adjustment (KVA), a new component of trade pricing that reflects growing capital costs.
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The respondents are split on many of the 23 questions in the survey, but there is agreement that if banks were to
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