Basle Agrees To In-House Risk Modelling

METHODS & REGULATIONS

The international Basle Committee on banking supervision has unveiled its long-awaited supervisory proposals for applying capital charges to market risks incurred by banks. The new proposals include what Basle officials say is a "significant innovation in regulatory methods" - the committee will allow banks to use their own value-at-risk models to calculate their capital requirements. However, Basle will impose a "number of qualitative and quantitative criteria for those banks which wish to u

To continue reading...