Systemic risk
Now it's op risk's turn to take centre stage
It's official. Operational risk has just as much potential to be systemic as credit and market risk. Here's hoping this will generate a bit more R-E-S-P-E-C-T among the general risk community for a discipline that aficionados of this magazine already…
Russia opens up
Russia is moving ahead with Basel II implementation, with a new industry working group and new regulatory rules. Ellen Davis reports
Basel II is a key driver for real-time info
Speakers at the Cable & Wireless roundtable on real-time information in mid-September all agreed that real-time information (RTI) would help banks manage liquidity, minimise risk and improve operational efficiencies. They also agreed that one of the key…
Op risk charge flawed, says State Street
WASHINGTON, DC - "It is difficult to see how a regulatory operational risk-based capital rule would have promoted the financial system’s rapid recovery on 9/11," said David Spina, chairman and chief executive officer of State Street Corporation, the…
UK FSA announces own conflict-of-interest rules for banks
Today the UK's Financial Services Authority (FSA) has released Consultation Paper 171, designed to address conflict-of-interest issues and bias in analyst recommendations.
BIS puts spotlight on credit risk transfer
In a report published today, the Bank for International Settlements (BIS) highlighted disclosure, concentration and the role of ratings agencies as key features of the credit risk transfer market that may need to be addressed with regulation.
Academic voices dissatisfaction with Basel II
The Basel Committee on Banking Supervision still has a great deal of work to do before the Basel II capital accord can be successfully implemented at financial institutions, Jacques Pézier, director of the risk management group of the ISMA Centre at the…
Basel II helps German banks focus on risk, says Moody's
A renewed focus on profitability and strategic refocusing among German banks leads Moody's Investors Service to believe that “the country's banks will not undergo a systemic crisis”, the rating agency said in a report on the German banking sector,…
Pro-cyclicality in the new Basel Accord
Could Basel II worsen recessions? By backtesting the proposed capital rules to the lastrecession, D. Wilson Ervin and Tom Wilde argue that the increased risk sensitivity of loanportfolio regulatory capital in the new Accord could have unwelcome systemic…