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Foreign exchange

Economic capital – how much do you really need?

Economic capital is becoming the language of risk. While market, credit and operational risk have different determinants and use different methodologies, the levels of risk can all be summarised in a common dimension – the amount of economic capital…

Industry KRI study takes off

PHILADELPHIA - A new financial industry initiative to study and define key risk indicators (KRIs) is gathering momentum. The results of the first stage of the process and the simultaneous launch of the second phase were announced in late October.

Tri-party repo push for Europe

Europe's tri-party repo market may be ready to take off, thanks to the combination of tighter credit conditions and the provision under Basel II, the new Accord on bank regulatory capital, for lower charges on collateralised financing.

CME cuts European fees

The Chicago Mercantile Exchange (CME) has slashed transaction fees for all products traded electronically on Globex in Europe, bringing its costs in line with rivals the Chicago Board of Trade (CBOT) and Eurex. However, the cut of 73% to 44 cents, from…

Despite concerns, banks act on Basel II

Jörg Behrens and Peter Davis of the Ernst & Young Global Financial Services Risk Management Practice, present the results of a global survey of financial services managers'opinions about the future of the Basel II process and its effects on their…

Sponsor's article > When is best practice good enough?

A dramatic change in banking regulation has been the move from prescriptive procedures towards 'best practice' risk management. Disagreements about how quickly the new approach can be applied to credit risk is central to arguments about revising Basel II.

A-IRB is overly prescriptive, say US banks

Several US banks would like to see a full internal models-based approach to regulatory capital. According to their response to the Advance Notice of Proposed Rulemaking (ANPR) on the implementation of the new Basel Capital Accord, the banks said the…

GAO urges curbs on 'tying'

The General Accounting Office has recommended that bank regulators take additional measures to adequately enforce laws against the tying of commercial credit to more lucrative investment banking business, despite a lack of hard evidence to support…

RMA signs up for OpVantage First database

The Risk Management Association (RMA) has signed up to use OpVantage's First (financial institutions risk scenario trend) database. OpVantage, a division of rating agency Fitch, provides operational risk software to the industry.

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