German banks attack Basel charge for banking book rate risk
Regulators want to apply an explicit charge to the interest rate risk sensitivity of loans and deposits, but banks fear it will not reflect the real risk of these products
Market participants have slammed regulators' attempts to draw up a standard capital charge for interest rate risk in the banking book, saying draft plans are not satisfactory and will struggle to reflect the risk profile for some products, including mortgages.
"Do we think this is feasible? To tell you the truth, I hope not, because what they have come up with so far doesn't really show very satisfactory solutions," said Michaela Zattler, division manager for banking supervision at Germany's
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