Basel II

Basel III: kill or be killed

The Basel Committee is trying to prevent a repeat of the financial crisis with a package of new rules, but banks argue the cure could be worse than the disease. After spending the past two months filling out spreadsheets on the impact of the proposals,…

What does VAR mean in 2010?

Value-at-risk figures fell across the industry in 2009, while exceptions dropped significantly from levels in 2007 and 2008. But discussion over what VAR figures actually show and how the numbers are interpreted by senior management continues. By…

Contingency plans

Following recent issues of contingent capital by Lloyds Banking Group and Rabobank, other firms are eyeing similar issuance as a means of meeting higher capital requirements in a cost-effective way. But the Basel Committee, which is due to discuss the…

Where's your motivation?

Discussion about incentives to promote good risk management is increasingly gaining relevance for Basel II advanced measurement approach applicants, as well as for banks adopting the standardised approach

Passage to India

It’s a long way from Basel to Mumbai, and it will be a while before India’s banks have fully implemented the Basel II capital requirements framework. OR&R looks at how far they have come, and the obstacles they must overcome on the path ahead

Making Solvency II stick

Dubbed 'Basel for insurers', operational risk management under the Solvency II regime is still mystifying most in the insurance world. This case study highlights the basic issues to consider.

A capital suggestion

To prevent another financial crisis, should regulators introduce more of the same – that is, greater capital requirements – or should they take a completely different approach and address corporate culture and behaviour instead?

Road to transition

For a moment it looked as if the post-crisis drive for reform was losing momentum. But the Basel Committee on Banking Supervision has established working groups to keep the industry focused, and to propose ways to keep moving forward

A common language

Goldman Sachs’ operational risk management department has two global co-heads, Spyro Karetsos and Mark D’Arcy, who together are using a ‘Rosetta Stone’ approach to break down operational risk language barriers between business lines.

The sum of its parts?

The latest Basel committee proposals to force insurance subsidiaries’ equity to be financed with the parent’s Tier I capital poses a threat to the bancassurance business model, already wounded from high-profile failures. The increased cost of capital…

Exposing counterparty risk exposure

Banks have focused on improving counterparty credit risk management capabilities since the onset of the financial crisis. How are they changing systems to ensure accurate monitoring of exposures on a real-time basis?

Hitting the groundwork

As head of the EC’s financial markets infrastructure unit, Patrick Pearson is leading the effort to draw up new European legislation for derivatives. He talks to Risk about the progress of that effort and the importance of aligning the rules with similar…

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