Revised CVA capital charge does not go far enough, say dealers

Many bankers remain uneasy about a new capital charge for credit value adjustment (CVA) that was finalised in December, despite a number of changes to the Basel Committee's original proposals.

The charge was originally presented in December 2009, but modifications were made after claims the calculation was not risk-sensitive enough. The revised proposal is much improved, dealers say - but they argue further changes are required.

One of the major criticisms is that banks are not permitted to use