Staying alive: the EU’s stubborn CVA exemption

Delayed Pillar 2 capital charge could help US banks take EU market share in corporate hedging

Piles of euros

Condemned at Basel almost four years ago, the European exemption from holding capital against credit valuation adjustment (CVA) risk on corporate derivatives exposures is the deviation that will not die. Now lawmakers look set to allow the European Banking Authority – a longstanding critic of the exemption – to decide its fate.

And yet, it seems banks and corporate treasurers may get to keep their hard-fought concession for another few years. In the latest strange twist in this long saga, it’s

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: