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Foreign exchange

A new frontier

US financial advisers are being targeted to open up the alternatives market to new investors. However, they need to attain a certain level of sophistication in order to fully profit from this new distribution route, says Jeff Benjamin reporting from the…

Data trouble

Regulators insist that they want a capital charge on banks’ operational risks. But the plan rests on the ability of banks to collect data and model the risks involved, and there’s a frightening lack of agreement on how to do that.

Reconciling ratings

How should internal credit ratings be calibrated to long-term default rates? This multibillion-dollar question is at the heart of the debate over Basel’s IRB approach. In thisarticle, Stefan Blochwitz and Stefan Hohl use simulations to demonstrate wide…

Moving to the centre

Basel II means banks will have to centralise the management of operational risk or lose out to competitors.

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