Basel capital floor faces credit risk eclipse
Impact of capital floor depends on new credit risk SA and changes to treatment of provisions
Recent leaks from the tortured attempt to finalise bank capital standards made it look like everything had been figured out, save for the awkward question of how far to limit the savings offered by internal risk models. In reality, experts warn, calibrating that floor will not mean much until regulators settle technical questions about the standardised calculations on which it is based.
Regulators failed once again to reach an agreement during meetings on June 14 and 15, after European nations
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