Foreign exchange
Chinese banks debut with renminbi securitisations
China Construction Bank (CCB) and China Development bank (CDB) have kicked off the first securitisation schemes by Chinese banks, with CCB issuing RMB3 billion ($373 million) worth of residential mortgage-backed securities (RMBS) and CDB issuing RMB4.18…
New Swiss rules reveal hidden capital
Statutory or book reserve capital requirements, a mainstay of continental European insurance regulation, may come under pressure as practitioners digest the results of a field test of new solvency rules conducted by Switzerland's insurance regulator.
BaFin eases clearing house restrictions
BaFin, the German regulator, has removed a requirement for financial institutions to hold capital against transactions with swaps clearing counterparties – a rule that had threatened German banks' use of SwapClear.
Fed fines ABN Amro $80 million
The US Federal Reserve has ordered ABN Amro to pay $80 million in fines for lacking adequate risk management that could identify money laundering activities in its overseas branches. According to the order released on December 19, the Amsterdam-based…
Preparing for the Big One
Wall Street performs the largest business continuity test since Y2K.
Coping with complexity
The demand for risk-based technology has never been higher due to changing business practices, growing regulatory burdens and burgeoning demand for cross-asset class products. But new entrants can still gain market share in niche areas.
US tackles home-host issues caused by Basel II delay
US financial regulators are working with foreign bank supervisors to minimise cross-border implementation difficulties that might arise from the country’s delayed Basel II plans.
Oracle adds Basel II functionality to its compliance platforms.
Oracle, the world’s largest software company based in Redwood Shores, California, has added the Reveleus Basel II solution to Oracle’s enterprise risk management and compliance platforms.
Australia sees 37% decline in forex OTC options, says Afma
Trading in over-the-counter foreign exchange options fell by more than a third over 12 months to the end-June this year, according to figures released by the Australian Financial Markets Association (Afma).
Clash of the regulators
As the pace of the Solvency II process to reform European insurance supervision quickens, British and French regulators have clashed over the use of market-consistent solvency requirements, to the alarm of proponents of risk-based supervision.
Perspectives - Simon Topping
Simon Topping, Executive director, banking policy, Hong Kong Monetary Authority
Financial institutions failing to adopt economic capital approach, says PwC
Many financial institutions are failing to realise the full potential of using economic capital to enhance tactical and strategic planning, and optimise shareholder value, according to a new study by PricewaterhouseCoopers (PwC) in association with the…
Australia and Singapore lead Basel II adoption
Singapore and Australia are now the leading countries in the Asia-Pacific region in the implementation of the new capital framework, Basel II, according to a report by Celent, an international financial consultancy.
Basel II to encourage smaller banks to invest in risky assets
The new Basel II capital rules will encourage smaller banks to invest in riskier assets, according Peter Plaut, a managing director in fixed income research at Bank of America in New York.
Isda introduces new definitions for FX and currency options
The International Swaps and Derivatives Association and Foreign Exchange Committee at the New York Federal Reserve have introduced an appendix to the 1998 definitions on FX and currency swaps this week. These changes are designed to standardise…
UK government backs effort to increase use of agriculture derivatives
The UK government has thrown its weight behind a Home Grown Cereals Authority (HGCA) initiative to encourage UK farmers and the banking community alike to make better use of financial risk management techniques, if the industry is not to be hit hard by…
Basel II to encourage smaller banks to invest in risky assets
The new Basel II capital rules will encourage smaller banks to invest in riskier assets, according Peter Plaut, a managing director in fixed income research at Bank of America in New York.
Making progress
The recovery in Japan’s banking sector means that country’s banks are closer to meeting the minimum capital adequacy requirements of Basel II than was anticipated even 12 months ago. However, challenges remain, particularly with regards to data. By John…
Trading Book regime needs change, says Schmidt Bies
New liquidity and credit risks in the trading book warrant the review of the Market Risk Amendment of 1996 as proposed by the Basel Committee, according to Susan Schmidt Bies, member of the Federal Reserve Board of Governors.
CSFB buys more German NPLs
CSFB has bought a €300 million loan portfolio from the German mortgage bank Deutsche Genossenschafts-Hypothekenbank (DG HYP).
New CDS for ABS document to spur demand, says S&P
Analysts are predicting that revisions to the International Swaps and Derivatives Association's documentation templates for credit default swap (CDS) options referenced to asset-backed securities (ABS) could spark a several billion dollar fillip in…
CFTC chairman calls for more competition
Reuben Jeffery, chairman of the US Commodity Futures Trading Commission (CFTC), has underscored the importance of competition as a critical factor in maintaining the future success of the markets. "We must help foster a market environment that invites…
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