Federal Reserve Bank of Chicago
Basel acts on private equity losses
The Basel Committee on Banking Supervision has issued a proposal for determining the capital reserves for bank equity exposures. It promises to be as controversial as the other aspects of the Basel II capital Accord.
Moving to the centre
Basel II means banks will have to centralise the management of operational risk or lose out to competitors.
Weighting for Risk
Basel has recognised that collateral and seniority give banks an advantage when an obligor defaults. Here, Jon Frye argues that the proposal may encourage banks to lend on the collateral – a practice that could threaten their own survival – and proposes…
Do we need a broader definition of op risk?
A definition of op risk should embrace the linkages with market and credit risk, argues Ken Swenson.
A lot of loose ends and not much time
There's little surprise, but reactions still range from cautious approval to outright hostility. And all sides agree that some very big loose ends remain to be tied up on a very tight schedule.