Credit risk
Fourth-trigger CDS market weighs going blind
Dealers see benefit of undisclosed, replenishable pools – but not everyone is convinced
Bank loan credit risk pooling: risk diversification versus the moral hazard problem
This paper offers a credit risk pooling arrangement which negates the moral hazard problem and improves the risk-return profiles of participating banks.
Bowman shuns CECL. Friends say it just needs a little help
How far should FASB go in reforming credit-loss accounting rules?
Floored: Basel III rethink upsets IRB dominance
Introduction of output floor means internal ratings’ popularity takes a hit, but isn’t quite out for the count
AI agents could become credit risk managers… almost
Risk Live: Bankers say credit stress-testing could be automated, but humans remain accountable
Credit data provider of the year: Moody’s
As financial institutions seek faster, more contextualised credit insights, Moody’s has combined proprietary datasets, domain expertise and agentic AI to help clients make more informed risk decisions
Banks demand look-through on private credit lending
Risk Live: Risk managers say they need to see underlying loans before lending to funds
Asian banks may need to step up Hormuz-related credit provisions
Regional banks were slow to respond in the first quarter, but the crisis isn’t going away quickly
BDC bank borrowing capacity rebounds after multi-year slide
The 20 largest BDCs added $11 billion in bank commitments in Q1, despite recent scrutiny
Everything is connected: Santander’s US CRO shuns siloed thinking
Rise of AI intensifies links between fraud, cyber, third-party and other operational risk categories
Huntington CRE book jumps again after Cadence buy
Acquisition lifts property exposure by 60% as delinquencies reach eight-year high
Erba myth: will US banks choose new capital measure?
B3E gives US banks a dilemma – adopt expanded risk-based approach, or a new standardised alternative
How banks are using AI assistants for credit risk model validation
Model validation has become a structural bottleneck for European banks. AI-based assistants can offer a credible response and early production deployments are having an operational impact
Crisis? Which crisis? How ECB stress test failed to see Strait
Banks were told to design geopolitical shock scenarios, but some focused mainly on tariffs
Investigating the relationship between liquidity creation and credit risk, with the moderating role of loan concentration: Islamic versus conventional banks in Pakistan and Malaysia
The authors investigate links between liquidity creation and credit risk in Islamic banks and conventional banks, with loan concentration as a moderating effect.
Private credit disclosures leave more questions than answers
Muddled metrics and scattergun reporting hinder comparison of US lenders
Europe’s next chore: cleaning a floor made messy by the US
Rejection of Basel III’s output floor leaves EU with some difficult decisions to make
EU weighs response to US dropping Basel capital floors
European regulators assessing whether US proposal amounts to a “substantial” deviation
The creation, credit risk and performance of fintech credit: peer-to-peer lending in Canada
The author analyzes the trade-off between credit risk and financial performance within the Canadian peer-to-peer lending market, examining how borrower characteristics and platform-assigned credit grades influence loan survival outcomes.
In simplifying credit risk models, EBA could compound capital costs
Skipping hard yards of internal ratings-based approach might trip higher capital charges and implementation costs
FSB warns of ‘circles of risks’ in bank risk transfer deals
Credit lines, portfolio financing and NAV facilities for private credit funds could rebound on banks
Change fatigue could dim EBA’s credit risk simplicity drive
Revisions may be kept to a minimum as short-term implementation burden weighs on banks
SRT issuance hits €260bn as capital relief grows
Banks cut capital ratios by over 40bp on average via SRT deals, BIS research shows
A novel budget-based C+SVM model for credit risk prediction
The authors propose a modified support vector machine model based on load budget with which to predict credit risk.