Filter furore: EU countries set to shield banks from bond volatility

- Lukas Becker
- @LukasBeckerRisk
- 04 Nov 2013

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

During 2012, Allied Irish Banks (AIB) saw €553 million wiped from the value of government bonds it was holding – a loss equivalent to just more than 5% of its Tier I capital. Happily for the bank, it did not have to take the hit because the bonds were held in its available-for-sale (AFS) portfolio, and Basel II filters AFS volatility out of regulatory capital numbers. Even more happily, while this filter is removed in Basel III, the Central Bank of Ireland (CBI) plans to ignore that for the next

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.

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

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