Fourteen EU banks face sanctions for poor market risk models
Twenty lenders lowballed capital requirements
European Union authorities will take action to address shortcomings with the market risk models of 14 lenders following the results of the latest supervisory benchmarking exercise (SVB) by the bloc’s banking watchdog.
Penalties will range from supervisory reviews of value-at-risk and incremental risk charge models to capital add-ons.
Four banks were deemed ‘high priority’ for intervention based on, among other reasons, their outlier status following the benchmarking analysis, history of
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