Feature articles on risk management, derivatives and complex finance - Risk.net

Risk management

Capital charges not enough to protect banks against op risk, says Moody’s

Protective capital is an incomplete line of defence against operational risk and effective op risk measurement and management should amount to more than just a capital allocation exercise enforced by regulators, a leading credit rating agency said in…

01 Jul 2002

Credit risk

IMF seeks scrutiny of insurers' credit risk

The International Monetary Fund (IMF) says greater information about insurers' financial markets activities – including credit risk transfers – is needed before their implications for financial stability can be clearly ascertained.

01 Jul 2002

Basel Committee

Germany drops objections to Basel II after SME solution

Germany lifted its objections to the Basel II bank accord in early July, welcoming a compromise on lending to small businesses that would be discussed by global banking regulators at a mid-July meeting.

01 Jul 2002

Structured products

US central banker urges pillar 3 action now in light of scandals

Recent accounting scandals mean international banks should start improving their disclosure of risks and capital adequacy now and not wait for the pillar 3 disclosure provisions of the Basel II bank accord to take effect in late 2006, a senior US central…

01 Jul 2002

Structured products

Basel II experts shift focus to securitisation after SME solution

Experts working on the Basel II bank capital rules are focusing on the technically difficult issue of asset securitisation after agreeing a solution to the politically sensitive problem of how lending to small- and medium-sized enterprises (SMEs) should…

01 Jul 2002

Solvency II

Firms Voice Frustration over FSA Continuity Plans

Firms say "toothless" disaster recovery guidelines will result in inconsistent plans.

01 Jul 2002

Risk management

Survey shows modifications could lower Basel II credit risk charges

Banks using a more complex risk measurement approach under the Basel II bank accord, if potential modifications are put in place, would have lower credit risk capital charges than under the current Basel I accord.

01 Jul 2002

Risk management

Basel regulators set to issue QIS 3 spreadsheets soon

Global banking regulators said in early July they would soon issue draft spreadsheets and an information package, including detailed instructions, on the crucial QIS 3 survey that in October will seek information on how banks would be affected by the…

01 Jul 2002

Risk management

Basel II models have little relevance for developing countries, US banker says

Banking supervisors in developing countries should focus on the risk environment in which banks operate because relying on banks to measure their own safety and soundness may give little useful information about a banking sector, a senior US central…

01 Jul 2002

Regulation

UK’s FSA delays Basel II paper to mid-July

The UK’s chief financial regulator has delayed issuing its discussion paper on implementing the Basel II bank capital adequacy accord and parallel European Union (EU) rules to mid-July.