Credit Suisse and UBS on Basel 2.5: Half a world away
Swiss banks had to switch over to Basel 2.5 at the start of 2011, but they are still wrestling with elements of the new trading book rules – from educating traders on the impact, to working out sovereign bond risks. And differences have already emerged between the two institutions. By Duncan Wood
Credit Suisse and UBS have had almost a year to get used to Basel 2.5, the new trading book capital rules that apply to other banks from the start of 2012. They have collected the data, rolled out the four new risk measures designed to tackle blind spots in the current value-at-risk approach, and explained to trading desks why certain positions and strategies now look less attractive. Familiarity with the new regime has not made the Swiss banks view it more kindly.
“On the whole, Basel 2.5 is a
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