Basel II
Uncertain liquidity ratios
Like their counterparts elsewhere, South African banks are bracing themselves for a round of changes to Basel II rules. But it is the implications for liquidity and not capital that most concern market participants.
Counterparty charge an act too far?
The Basel Committee shocked many bankers in December by unleashing proposals to significantly increase capital requirements for counterparty risk exposures. But industry participants argue the measures overlap with each other and could hike up capital to…
Liquidity flow charting
New rules on liquidity risk from the Basel Committee and the UK Financial Services Authority have left banks scrambling to get the necessary risk and reporting systems in place. Clive Davidson looks at the challenges they face
Wrestling with correlation
The correlation risk inherent in most structured products represents an ongoing headache for manufacturers. While new regulatory proposals would affect how much risk banks keep on their books, market dynamics are at play, especially the rise in…
Basel rules set to change
Despite the difficulty and cost involved, even banks accept that aspects of the old financial regulatory regime must yield their place and go. Patrick Blum asks industry consultants what Basel II reforms they expect to see in 2010, and how firms can…
The liquidity lifeline
The Basel Committee intends to introduce internationally binding
Profits of doom
An analyst at JP Morgan has predicted recent changes to derivatives regulations could drastically cut return on equity at investment banks. Will banks look to exit certain business lines with less attractive risk-adjusted returns as a result? Duncan Wood…
Land of giants
Canada's banking community comprises a small group of very large banks. Working together, and with their sole, principles-focused regulators, this tightly-knit, risk averse group has avoided the worst of the financial crisis and taken internal op risk…
A variable response to pro-cyclicality
Ensuring banks put in place counter-cyclical capital buffers has become a key area of focus for regulators across the globe, with some proposing capital buffers be based on financial or macro variables. Alessandro Conciarelli and Mario Quagliariello…
The liquidity lifeline
The Basel Committee intends to introduce internationally binding liquidity standards, to include both a requirement for a liquid assets buffer and longer-term structural funding constraints. How will the measures be calculated and what will the…