Basel II aims to achieve a closer alignment between regulatory capital and underlying economic risk. Current Basel rules impose a flat 8% requirement for all corporate exposures, regardless of risk. Basel II, due for implementation in late 2006, proposes that the level of required regulatory capital should adjust to reflect movements in the level of credit risk.
The week in Risk.net, February 10-16 2017Receive this by email
- UK banks face increased XVA burden after ring-fencing
- Operational risk in financial services: Navigating risk management challenges in an uncertain world
- Uniform EU stress test backed by CCPs and banks
- Three Japanese banks consider new CVA approach
- EC to miss Mifir equivalence deadline for share-trading venues