French banking commission keeping a close eye on risk management techniquesPARIS - Christian Noyer, head of the French banking commission, has stated that even though recent stress tests demonstrate the solidity of French banks, the uncertainty surrounding the global financial crisis requires a reinforcement of risk management measures.
Noyer, who is also a European Central Bank governing council member, has confirmed that the banking commission will be keeping a close eye on the development of more appropriate risk management techniques at French banks. He also urged the need for banks to employ more regular stress tests using macroeconomic scenarios and to reinforce the conditions of their own stress tests. Corporate governance practices and compensation packages will also be watched by the Commission to ensure banks do not return to a system that encourages excessive risk-taking.
More on Risk Management
Analysts extrapolate from £1.8bn FCA fine
New approach introduced six months ago, as event risk increases
‘Under-risked’ plans will not hit 7.5% return targets, warns Paamco CEO
Chief risk officers from boutique and institutional investment firms talk about their risk management and reporting platforms
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.