Capital requirements

Capital punishment?

At a landmark meeting early this month, the Basel Committee will finalise its proposals for a host of measures, including counter-cyclical capital buffers and a leverage ratio. The consultation in early 2010 will be the industry’s last chance to fight…

Corporate statement: Retirement strategies

Recently, reduced household incomes from the decline in home and equity prices, as well as rising unemployment, have forced Americans to reconsider how they spend and invest their personal finances. For those in retirement, wealth preservation and…

Confidence crunch

Many financial institutions calibrate their required level of economic capital by considering the probability of default associated with a target debt rating. However, as the financial crisis has shown, confidence in a bank can erode before its Tier I…

G-20: High hopes

“We want growth without cycles of boom and bust and markets that foster responsibility not recklessness” – G-20 leaders at the Pittsburgh summit

Capital changes

Financial supervisors have reaffirmed the importance of common equity and disclosed reserves in Tier I capital. But the direction of discussions on hybrids in Tier I and the relative importance of Tier II is causing concerns in Asia. Harry Thompson…

Warranting approval?

The US Treasury has come under fire for allowing banks to repurchase warrants held under its Troubled Asset Relief Program at a discount. Is the criticism justified? And what effect is an auction of JP Morgan's warrants likely to have? Mark Pengelly…

Be prepared

Nobody likes change. And it is difficult at the moment to predict where the US is heading next on the regulatory front. But having an enterprise risk management system in place will help banks face the coming market and regulatory challenges. Victoria…

Higher ground

Plans are afoot among global regulators to impose tougher regulatory requirements on large and systemically important firms, including higher capital charges. Will they succeed in curtailing systemic risk? Mark Pengelly investigates

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