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

Darryll Hendricks

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here