Basel CVA bombshell widens gulf with bank accounting

Dealers face conflicting incentives and capital hike after internal models are blown away

Bomb drop
Basel's bombshell: dropping the IMA has upset large banks

Back in early March, banks were eagerly getting to grips with a supervisory exercise to calculate the capital impact of new proposals laid down by the Basel Committee on Banking Supervision.

The exercise – one of the committee's perennial quantitative impact studies – was meant to work out the effect of changes to the treatment of credit valuation adjustment (CVA) risk. The changes offered banks several different routes for capitalising CVA risk, including an internal models approach (IMA-CVA)

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a 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