Clampdown likely on banks' 'excessive' risk-model variation
Basel to publish report on variability in models banks use to assess credit risk, measure capital needs
Vienna
GLOBAL regulators are preparing to narrow banks' options for assessing credit risk in a bid to prevent the understatement of possible losses.
The Basel Committee on Banking Supervision will publish a report by early November on "excessive" variability in the models banks use to assign risk and measure capital needs, secretary-general Bill Coen said in an interview at the regulator's headquarters in Basel, Switzerland. The document has been prepared for the Group of 20 nations.
The report "will include things like a non-risk-based leverage ratio and the introduction of floors or benchmarks, which is requiring banks to publish what its capital requirement would be if they used the simpler standardized, non-model based approaches",…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Latest Singapore 6-month T-bill offering cut-off yield of 3.74% as applications dip
Morgan Stanley Asia private equity unit to reorganise as CEO retires
US seeks 36 months’ jail for Binance founder Zhao
Keppel’s Q1 revenue down 6.3% to S$1.5 billion; legacy O&M assets a drag on net profit
JPMorgan talking with investors about two synthetic risk transfers
HSBC says growing Chinese wealth fuels client investments in US