StanChart reports first VAR breach since Q2 2020
Three exceptions recorded in the fourth quarter put the bank one step away from a higher capital requirement
Standard Chartered incurred three value-at-risk breaches in quick succession in the last quarter of 2021, as rates volatility, currency swings and pandemic worries conspired to blindside trading risk controls.
The bank’s VAR model, which had maintained a spotless record for six straight quarters, fell short of actual trading losses on three occasions over just 45 calendar days.
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The bank attributed the higher-than-forecast losses to a fall in New Zealand markets due to hawkish central
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