Cebs: Bank risk disclosures could be better
Daily news headlines
Cebs says banks are holding back on transparency
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
Beware war exclusions in cyber insurance, risk managers told
Risk Live: Experts say policy wording is tightening up following rise in ransomware attacks
Top 10 operational risks for 2024
The biggest op risks for the year ahead, as chosen by senior industry practitioners
Top 10 op risks: AI fears drive cyber risk to record high
External fraud re-enters top 10; change management now a top five concern
Harsh judgements: why Stateside lenders are upping the Q-factor
As CRE stalls, qualitative adjustments are forming a larger part of US banks’ credit risk allowances
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
Bank credit risk: how well do you know your counterparties?
As financial markets evolve, evaluating the complex credit risk exposures of non-bank counterparties is crucial for effective risk management, says Quantifi’s Dmitry Pugachevsky
EU index managers face funding risks as US moves to T+1
Rotations from European to US assets will need prefunding due to slower EU settlement
CCPs show support for daily stress margin tools
Anti-procyclicality measure floated by HKEX official sparks interest from rivals including Nasdaq
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high