Regional banks may benefit from Basel CVA surprise

Basel Committee decision removes potential source of competitive advantage for large dealers

cycle-racers
Large banks may be losing an opportunity to race ahead

Major global banks have expressed shock and disappointment at the Basel Committee on Banking Supervision’s decision to drop the internal models approach for capitalising credit valuation adjustment risk (IMA-CVA), but many regional banks are more sanguine.

The idea of scrapping IMA-CVA has upset large dealers, which were in the middle of completing a quantitative impact study based on the own-models approach when supervisors revealed it would be ditched in a March 24 consultation.

Their regional

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: