Standardised approaches pile up capital and data woes

The Basel Committee on Banking Supervision’s revamp of its standardised capital approaches will affect all banks, even those using their own models – part of a drive by regulators to enhance comparability. Dealers fear the cost will be higher capital requirements

Change afoot: banks are watching the development of the new standardised approaches

A 500% jump in market risk capital requirements; a doubling of capital requirements for corporate lending; and a "significant" rise for operational risk – these are the scare stories flying around as the Basel Committee on Banking Supervision overhauls its standardised capital models.

In the past, banks with approval to model their own regulatory capital requirements might have shivered in sympathy, but would not have lost any sleep. Times have changed. The standardised approaches are being

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