Basel II
Patriot Act Point of Pain: Reference Data
The financial industry is expected to spend more than $10 billion to comply with the Patriot Act over the next three years. And at the heart of the issue is the data.
New Market, New OMS Sales Pitch
Baring Asset Management is doing something that a lot of trade order management vendors and market analysts wish the rest of the financial world would do: after implementing a new third-party order management system to replace its older in-house system,…
Open Platform - Not Just An Equity Front-End
The future OMSs will include a stronger fixed income role and maybe even middle- and back-office functions like confirmations and allocations.
How to avoid overestimating capital charges for op risk
Pooling internal and external data is a central issue to estimating capital charges for operational risk. Here, Nicolas Baud, Antoine Frachot and Thierry Roncalli of Crédit Lyonnais discuss the methodology they have developed.
Banca Intesa: conquering the cultural challenges of op risk
MILAN - Much ink will be spilled over the more quantitative aspects of operational risk — modelling, data gathering, technology infrastructure, for example. But it's the cultural challenges of implementing an operational-oriented framework that risk…
PwC: Poor governance will cost capital
HONG KONG - Sixty percent of respondents to a recent PriceWaterhouseCoopers (PwC) study indicated that trust in financial institutions had been eroded globally.
McDonough speaks on QIS3 results, and US regulatory changes
"At this early stage, the results suggest that the incentives built into the New Accord are functioning as we had hoped," said William McDonough, president of the Federal Reserve Bank of New York and the head of the Basel Committee on Banking Supervision…
Basel II likely to boost credit markets, says Fitch
The Basel II capital Accord is likely to boost credit market funding activities, particularly for lower investment-grade companies seeking financing, according to Fitch, the credit rating agency.
BIS to offer derivatives statistics for individual countries
The Bank for International Settlements (BIS) said today that it is expanding its statistics on banks' country risk exposures to include data on derivatives exposures to individual countries.
Profile: Dresdner makes loss prevention a new priority
Operational risk management is a management programme, not just a modelling exercise, according to Jonathan Howitt, director of operational risk at investment bank Dresdner Kleinwort Wasserstein in London.
Tiner defends insurance margin changes
In a speech today to the Westminster & City Twentieth Anniversary life insurance conference, the Financial Services Authority's John Tiner sought to clarify a letter, released last Friday, that relaxed the solvency regime for UK life assurers.
FSA decision prompts tightening for insurers' credit spreads
The cost of protection for the European insurance sector has tightened by up to 15bp in trading this week following a decision by UK regulator, the Financial Services Authority (FSA), to ease regulatory solvency requirements for individual life assurers.
Extreme Outsourcing
"Lift-out" outsourcing projects by major institutional firms prime the pump for the rest of the industry.
Tiner says risk management must improve at life insurers
"Changes are...underway in the relationship between insurance companies and their supervisors," said John Tiner, head of the UK's Financial Services Authority (FSA) in a speech today to the Westminster & City Twentieth Anniversary life insurance…
Corporate governance hots up on the continent
Continental European countries are increasing their focus on corporate governance issues.
Japan's FSA cracks down on lapses by foreign firms
TOKYO – In mid-January, Japan's Financial Services Agency (FSA) issued administrative actions against the Tokyo branches of both Crédit Lyonnais Securities Europe and ING Securities after the agency found regulatory breaches at both firms.
Lepus lists op risk leaders
US firm OpRisk Analytics, Canada-based Algorithmics, and UK company Raft International are leading the operational risk vendor market, according to a report published in January by management consultancy Lepus.
FSA announces 2003 priorities
The UK's Financial Services Authority (FSA) outlined its strategy for fiscal year 2003-2004 in its annual budget and a report, Financial Risk Outlook 2003, released in late-January.
Fitch upgrades OpVar tool for operational risk
Fitch Ratings has added a range of new services to its OpVar software suite, an operational risk management quantification tool. Version 5.0, scheduled for release in March, now offers an enhanced data collection module and improved data management…
Nationalisation required for Japanese bank recovery, says Fitch
A partial nationalisation of Japan's ailing banks may be the only way to resolve the country's economic woes, with recent efforts by individual institutions to restructure their balance sheets unlikely to lead to an autonomous recovery in the banking…
Global banking community poised and ready for QIS 3 op risk results
BASEL, SWITZERLAND – Bankers are eagerly awaiting the results on operational risk from the third Quantitative Impact Study (QIS3).
Morgan Stanley says restructuring will not be required for capital relief
A subcommittee will recommend to the Basel Committee on Banking Supervision that capital relief from credit derivative hedging should not require the inclusion of restructuring as a credit event, Morgan Stanley analysts said in a report yesterday.
Testing rating accuracy
As Basel II approaches the implementation stage, regulators have identified internal ratings validation as a key challenge for banks using this approach. Here, Bernd Engelmann, Evelyn Hayden and Dirk Tasche build upon previous research showing how to use…
New dawn for loan portfolio management
The way institutions handle credit is changing. Charles Smithson compares the results of two surveys done in the past two years to discover how portfolio management has evolved.