European Banking Authority proposals to calculate excess credit valuation adjustment risk for potential supervisory capital add-ons have been widely criticised.
Basel causes confusion with step-in risk concept
The Basel Committee seems to be targeting banks’ asset-backed vehicles, but asset managers fear they will bear the brunt of any new rules.
Negative rates reinvigorate US stress test process
The US 2016 stress test scenarios suggest a switch of focus from monitoring banks’ data management to more groundbreaking risk analysis.
Insurers remain unconvinced by attempts to identify systemic risk
The industry believes the International Association of Insurance Supervisors has not focused enough on the impact of an insurer’s default.
Regulators play down bond market liquidity risks
Better buy-side liquidity management and ongoing technological changes are seen as the answer, not a roll-back of post-crisis regulation.
ESMA provides partial relief for EU repo markets
A redrafted technical standard on settlement discipline has addressed most concerns, but will still pose a major challenge to securities financing markets in Europe.
Calls for US to close gap with international standards on TLAC
Industry responses to the Federal Reserve’s consultation urge the regulator to align US standards more closely with those proposed by the Financial Stability Board.
Financial Stability Board reviews macroprudential tools
The G20 nations want regulators to examine past experience of using macroprudential frameworks to protect financial stability, to see if they work and how they can be improved with better cooperation.
US regulator questions bank resolution
Federal Reserve Bank of Minneapolis president Neel Kashkari believes regulators would still be unlikely to bail in a large bank during a period of economic turbulence.
Proportionality moves up EU agenda
EU member states have joined industry bodies in asking the European Commission to draft and implement regulations that respect the lower systemic importance of smaller banks.
@RiskRegulator
