Default dilemmas

The US formula for determining downturn loss given default under Basel II has been criticised by banks as too conservative. Some risk managers claim it could derail the objective of creating a level playing field across jurisdictions. Ashish Dev and Zailong Wan look at the evidence

The implementation of Basel II in the US stands apart from the approaches taken by regulators in other parts of the world. While the differences are numerous and have emerged from many directions, two issues have predominated among large, internationally active US banks. First, risk managers claim the US proposals are overly conservative and put domestic banks at a competitive disadvantage compared with their international counterparts. Second, it is argued that the retention of an overall

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here