In the Basel III world, traders know their business must deliver a target return on equity, or risk being shut down – but working out the capital cost, or benefit, of a trade at inception is so difficult...
Banks relieved as revised trading book proposals drop plans for capital to be based on regulator-set correlations
New research sheds light on implications of product's role as regulatory capital hedge
Insurance Risk and BNY Mellon have conducted a survey to look at how insurance companies are preparing for the new regime and the opportunities and challenges that the changes will bring.
More Basel 2.5 articles
Regulators have attempted to address a flaw within Basel II that gave banks an incentive to hold assets in the trading book. But Basel 2.5 may have gone too far, and made it more attractive to place assets in the banking book instead. By Giovanni Pepe...
Regulators are bracing for fresh criticism of bank capital modelling, say industry sources
A misguided plan to reduce Basel 2.5 RWAs and a series of management failures combined to leave JP Morgan’s chief investment office with a $6 billion loss, the bank finds
Banks are getting rid of legacy collateralised debt obligations by cracking them open and selling the collateral – a trend driven by investor demand for the assets and growing capital pressure on the banks. But it can be costly, complicated and even...
Basel III is a matter of life or death for bank trading businesses. If they can earn enough to justify the extra capital they tie up under the new regime, then they will live. If not, they will die. Credit Suisse and UBS have had to make this call before...
The Basel Committee’s proposal to scrap VAR and the move to OIS discounting struck a chord with Risk.net readers in 2012
Nearly two-thirds of respondents to a Risk.net survey think they’ll make more money from derivatives trading in 2013
This paper discusses a number of diverse considerations that risk managers need to incorporate into their thought processes and recurring procedures if they are to fulfill their role more effectively in the future
UK, 12th Feb 2014
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