Getting the cycle to work

Regulators are keen for banks to take a through-the-cycle approach, as opposed to point-in-time, when calculating bank capital. But how are banks responding to the change? By Duncan Wood


Old-fashioned credit risk is back on the agenda, and it looks set to ignite a battle for the soul of bank capital rules. A record number of defaults is expected this year - losses that will gobble up capital at the same time the deteriorating health of other companies requires capital levels to be raised. The fear is that many banks will not be able to cope, triggering a further round of bail-outs and stoking public anger. Unless something can be done beforehand, that is.

This magic 'something'

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