
Cebs: Bank risk disclosures could be better
Daily news headlines
LONDON - A new report from the Committee of European Banking Supervisors (Cebs) says the banks it examined could do better when it comes to disclosures about their business models, risks and risk management.
The report, ‘Follow-up review of banks’ transparency in 2008 half year results’, says only 45% of the banks in the Cebs sample provided detailed disclosures that met the organisation’s best practice standard for business models. Some 32% provided some disclosure, while 14% gave investors little information and 9% provided none.
The information Cebs is looking for includes “descriptions of the business model and changes, descriptions of strategies and objectives, descriptions of the importance of activities (including instruments and functioning) and descriptions of the role and the extent of the involvement of the institution)”.
Risk management disclosure was even worse, with only 32% providing detailed disclosure and 54% providing only ‘some’ disclosure. The majority of firms failed to disclose such things as market turmoil-specific information describing the nature and extent of risks incurred and liquidity risk. Only about 36% of firms were deemed to be in line with the disclosure best practices Cebs put forward in June.
The report can be found at: http://www.c-ebs.org/formupload/69/691c71d6-85cc-4c2c-81e3-a287fb7c2a4b.pdf.
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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Risk Awards 2023: The winners
BNP Paribas takes top derivatives prize, lifetime award for Stephen Kealhofer, Nomura wins rates
Markets Technology Awards 2023: This year’s model
Vendors are offering greater modelling flexibility. What if that’s not enough?
Op risk data: Wells Fargo walloped to the tune of $1.7bn
Also: AML breaches at Danske and Santander; Russia’s Radiotechbank scammed. Data by ORX News
Court allows lawsuit against Credit Suisse to proceed
Shareholder alleges board and senior execs breached fiduciary duties by failing to oversee risk
NSCC and OCC to enhance co-operation on large cash calls
New deal would improve management of options expiries, but will stop short of cross-margining
Capitolis registers swap dealer in strategy refresh
Vendor’s SBSD registration may facilitate unique multi-seller platform for equity swap business
LME model quirk saved members $915m nickel margin
Report on March 2022 blow-up says CCP may need to “intervene” on deduction of VM gains from IM
Financial firms rethink after cyber insurance premium spike
Brokers say there are signs pressure is easing, but quantum hacking threat could transform market