This introduction to the Journal of Operational Risk special issue shines a light on the relationship between financial fraud risks and financial stability.
Asia Risk 25: Code’s creators considering updates to sections on last look and pre-hedging
This paper analyzes how systemic risk structurally evolved between 2007 and 2017. The main contributions of the paper to the literature include the methodology, analysis and potential use for macroprudential policies.
This paper aims to fill a gap in the literature by providing statistical properties of the population stability index (PSI) and some recommendations on its use.
EU banks face a time bomb as public guarantee schemes expire next year
The results of this paper show that robust forward-looking statistical models are superior to backward-looking assessments of supervisory compliance, which could lead to less regulatory burden when integrated into the examination process, particularly at…
The authors estimate a county-level model of household delinquency and use it to conduct “stress tests” of household debt.
Banks may be reluctant to run down buffers even if regulators soften the MDA threshold for payouts
Alignment on principles needed “in short order”, says Basel working group chair
Questions over bailing in bank bondholders mean problem of too big to fail persists, experts warn
As swaps leverage shrinks, bankruptcy stay rules are not guaranteed to reduce systemic risk, says economist
Potential levels of loss mutualisation under EU rules are unnerving some clearing members
Deviations from regular payment patterns are a sign something might be wrong
Initial margin requirements for OTC derivatives can increase risk of contagion, writes economist
Research throws more light on the hidden risks of central clearing
The authors analyze the role of auctions in managing the default of a central counterparty’s clearing member.
Watchdog says carve-out needed in new recovery and resolution rules to avoid cascading default of clearing houses
European regulators face pressure to exempt sovereign exposures from leverage ratio
Also: Swedbank hit with huge AML fine; record Russia fine for StanChart. Data by ORX News
Denmark’s top supervisor says scaling back IFRS 9 would be a costly error
As the derivatives market has accepted the impending transition away from interbank offered rates, attention has turned to how best to manage it. Philip Whitehurst, head of service development, rates at LCH, explores how the clearing house is working…