Standard Chartered
UK banks triple AT1 capital in four years
Total outstanding amounts of AT1 stood at £42 billion at end-2018
Legal charges topped £6 billion at UK banks in 2018
Majority of costs relate to legacy issues, including PPI and RMBS mis-selling
Top UK banks cut CVA capital by £190 million
Barclays and StanChart are only two banks with higher CVA capital requirements in 2018
Securitisations push Barclays' market risk capital higher
UK bank reports 37% hike in securitisation capital charge year-on-year
PRA's Pillar 2 add-ons reflect mixed verdict on UK banks
Median CET1 Pillar 2A charge for big six banks rises to 2.25%
European and UK G-Sibs cut leverage at year-end
Barclays posted the largest quarterly increase of 60bp
Execution issues dominate UK bank op risk losses
This category of risk accounted for 47% of op risk losses on average at five banks
UK banks find various ways to de-risk
Risk-weighted assets fall despite loan growth at four of big five lenders
Legal fines dent StanChart profits
The bank put aside $900 million last year to cover penalties related to a series of investigations
Machine learning enters battle against financial crime
Standard Chartered and Barclays using AI to detect money laundering violations
Functional programming reaches for stardom in finance
Fans highlight more reliable code, and suitability for complex tasks and distributed ledgers
Data mining, machine learning and problems with autocalls
The week on Risk.net, January 19–25, 2019
Shipping and energy firms revisit hedging on IMO 2020
Upcoming shipping rules set to impact fuel prices across the energy complex
Many EU banks’ sovereign portfolios highly concentrated
Forty-eight lenders have more than three-quarters of sovereign risk allocated to home country
EU G-Sibs outpace rivals in growing repo books
Large European banks' increase exposures by €230 billion
StanChart CVA charge jumps 161% in Q3
Charge rises to $99 million in three months to end-September
Credit Suisse makes double hire for Asia solutions
Equity structurer Charles Firth rejoins, along with ex-StanChart and Goldman salesman Martin Cher
UK bank misconduct charges dwindle
Six of seven stress-tested banks report 50% fall in legal and regulatory reserves
Cross-border risks drive European G-Sib scores
Basel method shows cross-jurisdictional activity makes up 30.8% of banks’ total G-Sib scores
Barclays and Lloyds improve resilience to stress tests, HSBC falls back
Capital headroom above pass/fail thresholds increases to 250bp at lenders
IFRS 9 transition eases UK banks’ path through stress tests
Aggregate CET1 ratio 130bp lower without transitional relief
Quant of the year: Alexei Kondratyev
Risk Awards 2019: A glimpse of the future? Quant uses ML to model term structure and crunch margin costs
Fuel spikes expected from sulphur cap on shipping
Energy Risk Asia: IMO 2020 will save lives, but also impact entire energy complex