Though differences appear to have narrowed over proposed constraints on internal risk model used by banks, members of the Basel Committee are still struggling to sign-off on the Basel III framework.
Capital
Global regulators consult on stress testing CCPs
As part of the G20 reform agenda, global regulators are consulting on a stress testing framework for central counterparty clearing houses.
How quants could trigger the next financial crisis
A new book claims that the complex models used by banks underestimate and misunderstand risk, and could therefore be sowing the seeds of the next financial crisis. By Justin Pugsley
European Commission seeks to turbo-charge CMU
The European Commission set out ambitious plans for driving forward the capital markets union, but much will depend on the cooperation of the EU’s other policy stakeholders if they’re to become a reality. By Justin Pugsley.
Delays and high failure rates hit FRTB implementation
The Fundamental Review of the Trading Book is a particularly challenging piece of text to implement, but banks trying to do so with the less capital-intensive Internal Model Approach are finding it particularly difficult as they face having to keep their models approved. Some are considering not bothering with it. By Farah Khalique.
JPMorgan warns clearing houses not well enough capitalised
Central counterparty clearing houses are not carrying enough capital and should be subject to tougher rules, says a JPMorgan white paper. Justin Pugsley reports
Mnuchin orders regulators to examine Volcker rule
US Treasury secretary Steven Mnuchin orders regulatory agencies to investigate a softening of the Volcker rule.
Basel III framework edging closer to finalisation
The Basel Committee on Banking Supervision looks closer to finalising the Basel III framework as discussions on technical issues are narrowing down
Financial reform likely to be in small steps
US financial reforms likely to be evolutionary rather than happening in a big bang moment
Basel III prompts strategic rethink for Middle East banks
Though Middle East banks are generally in a strong position from a capital perspective, the rigours of complying with Basel III are nevertheless making them revisit their corporate strategies. By Nick Kochan.
