Conduct risk is a new focus, but the adverse macro scenario seems unlikely to produce information that might be useful to management.
UK deal stimulates EU banking union debate
The UK renegotiation agreement has sparked concerns about macroprudential policy and the fate of the EU single rulebook for banks.
Basel urged to adopt more sensitive approach to operational risk
Risk managers are divided on the value of internal models in the capital framework, but united on the need for a more sophisticated standardised formula.
US investment funds resist derivatives cap
Fund managers are set to welcome the Securities and Exchange Commission plan to consolidate the rulebook, but not a cap on derivatives notional exposure.
Comparability challenge for Basel credit risk framework
While large global banks want international comparability of credit risk weights, local associations want a standardised approach that respects different national credit market conditions.
Further potential delays to MiFID
The European Commission has asked for a review of Markets in Financial Instruments Directive rules on position limits for commodities and transparency for non-equity trading.
Clearing house recognition begins
EU and US regulators have initiated the process to allow each other's central clearing houses to operate on a transatlantic basis.
Call for stronger resolution powers
The Financial Stability Board wants clearer criteria on what can trigger a bank resolution, and better-defined powers to tackle branches, holding companies and non-regulated parts of a banking group.
Divisions on retail sub-debt distribution
Retail investors are less likely to 'run' from subordinated bank debt, but are also less capable of absorbing losses if the debt is bailed in.
More pressure on internal models
The Basel Committee on Banking Supervision wants to remove internal models from the credit risk capital framework for exposures to large corporates and financial institutions, and for credit valuation adjustments.
Most Viewed
- The PRA’s demanding liquidity framework is a commercial opportunity
- EU moves towards its own crypto-asset regime
- Banks should think twice before diving head first into the data pool
- Firms turning to automation to keep pace with anti-money laundering rules
- FCA shift in focus on culture regulation creating unintended consequences
@RiskRegulator
