Banks recover 75% of defaulted debts from large corporate borrowers

A new report based on comprehensive bank data-sets finds that banks tend to recover 75% of debts from defaulting larger corporate borrowers

Eduardo Epperlein

Bank trading book moves closer to being workable

A raft of proposals in a consultation by the Basel Committee on Banking Supervision covering the bank trading book have gone down well, leaving non-modellable risk factors as among the last major areas where the industry still needs to make a persuasive case for change. By Justin Pugsley.

Tim Lind

Data pooling for NMRF proves challenging for industry

On the face of it data pooling looks like an ideal solution to enable banks to ensure certain illiquid instruments they trade don’t become non-modelable attracting large capital charges in the process. But in practice, making this work is proving to be far from easy.

Ease of application may trump sensitivity in bank trading book says Basel’s Coen

Simpler approaches to managing market risk could be in the best interests of banks, the Basel Committee’s general secretary told an ISDA event.

Proposals for lower capital will benefit trust banks the most

US G-SIB Trust and custodial banks most likely to benefit from proposed leverage ratio and TLAC changes put forward by Fed and OCC.

Associations publish white paper on post-trade risk reduction benefits

Four trade associations are pushing for recognition of post-trade risk reduction benefits in the EU’s clearing obligation

Strong regulatory buffers for big banks crucial to stable economic growth

A member of the board of governors at the US Federal Reserve warned at a conference over tweaking regulations too much for fear of exacerbating  pro-cyclicality

US Treasury official advises against rushed implementation of NSFR and FRTB

US Treasury official warns against rushing into implementing Basel liquidity and bank trading book rules

Basel Committee consults on easing trading book requirements

Basel Committee consults over giving banks more leeway around measuring risk and capital requirements for their trading books

Could European safe bonds end crisis doom loop?

Eurozone authorities are pondering a new type of security that could simultaneously resolve bank reliance on domestic sovereign bond markets for regulatory capital and  stimulate the banking and capital markets unions. However, making it work won’t be easy. Justin Pugsley reports.

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