Capital requirements

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

Getting the cycle to work

Regulators are keen for banks to take a through-the-cycle approach, as opposed to point-in-time, when calculating bank capital. But how are banks responding to the change? By Duncan Wood

Getting the cycle to work

Regulators are keen for banks to take a through-the-cycle approach, as opposed to point-in-time, when calculating bank capital. But how are banks responding to the change? By Duncan Wood

The bank capital burden

Keenly awaited Basel II trading book rules were due to be decided upon as Risk went to press. Market participants worry the measures could retard the development of risk models and even kill off whole business lines Mark Pengelly reports

Building up Basel II

In an exclusive interview with Risk, Stefan Walter, secretary-general of the Basel Committee on Banking Supervision, discusses everything from capital to pro-cyclicality, while outlining the reform agenda for Basel II. Rob Davies reports

A capital lifeline?

Guaranteeing investors' capital with your own bonds has always been a convenient way for banks to borrow money from investors at the same time as offering them a cut in the upside of the chosen underlying in a structured note. Such fundraising is often…

Getting the cycle to work

Regulators are keen for banks to take a through-the-cycle approach, as opposed to point-in-time, when calculating bank capital. But how are banks responding to the change? By Duncan Wood

Pressure points

Regulators released the results of US bank stress tests last month, forcing 10 banks to raise a collective $74.6 billion in additional capital. But can market participants take any real comfort from the results? Mark Pengelly finds out

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