Standardised approaches pile up capital and data woes

Banks round on one-size-fits-all rules for market, credit and op risk

risk-0715-indepth-illo
Change afoot: banks are watching the development of the new standardised approaches

A 500% jump in market risk capital requirements; a doubling of capital requirements for corporate lending; and a "significant" rise for operational risk – these are the scare stories flying around as the Basel Committee on Banking Supervision overhauls its standardised capital models.

In the past, banks with approval to model their own regulatory capital requirements might have shivered in sympathy, but would not have lost any sleep. Times have changed. The standardised approaches are being

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The new rules of market risk management

Amid 2020’s Covid-19-related market turmoil – with volatility and value-at-risk (VAR) measures soaring – some of the world’s largest investment banks took advantage of the extraordinary conditions to notch up record trading revenues. In a recent Risk.net…

ETF strategies to manage market volatility

Money managers and institutional investors are re-evaluating investment strategies in the face of rapidly shifting market conditions. Consequently, selective genres of exchange-traded funds (ETFs) are seeing robust growth in assets. Hong Kong Exchanges…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here