CapitalRSS

Strong case for external auditors to check RWA, says BCBS’s Coen

Auditors should check banks’ calculations of their risk weighted assets (RWAs) to reduce the chance of inaccuracies said Bill Coen, the secretary general of the Basel Committee on Banking Supervision (BCBS).

All-time-high leveraged loan market ‘poses risks to banks’

US corporate leverage is now higher than that seen before the 2007-9 global financial crisis potentially creating risks for banks, warned Moody’s Investors Service.

UK banks could withstand hard Brexit - Moody’s

If the UK leaves the EU without a formal withdrawal agreement, it would create negative pressures on its lenders, but given they have strong capital and liquidity they are expected to remain resilient, said Moody’s Investor Services.

EBA recommends action to protect depositors of UK bank branches

Depositors at branches of UK credit institutions in the EU should continue to benefit from deposit guarantee schemes (DGSs) in the event of a hard Brexit, the European Banking Authority (EBA) said in an opinion.

US agencies extend comment periods for SA-CCR and stress testing

US regulatory agencies have extended the comment period on the standardised approach for calculating the exposure amount of derivative contracts (SA-CCR) and on proposed changes to company-run stress testing requirements.

kobe

SA-CCR: The importance of integration

The steady rollout worldwide of the Standardised Approach for Measuring Counterparty Credit Risk, a revised rule under Basel III applied to calculate the exposure at default of derivatives, means banks need to consider how to integrate the standard into their overall regulatory approach. By Kobe Demuynck, regulatory reporting consultant for Wolters Kluwer’s Finance, Risk & Reporting business

US agencies find improvement in credit quality of large loan portfolios

The credit quality of large syndicated bank loan portfolios has improved according to the Fed, FDIC and OCC, but they warned that risks remain elevated in the leveraged loan sector

Dubai

Dubai’s banks adapt to tougher economic and regulatory environment

Tougher economic conditions and more intrusive supervision is forcing banks in Dubai to consolidate to preserve margins and profitability

Jeroen Van Doorsselaere

Basel shifts on FRTB, but banks still see compliance as challenging

FRTB has been finalised and though the revised framework contains some changes asked for by the industry, there were few surprises and banks did not get everything they wanted.

Lotte Adams

Is ring-fencing making UK banks safer?

This year sees measures coming into force in the UK, which stipulate that banks must ring-fence the more utility orientated side of their operations from their investment banking arms. Though the approach appears to increase safety, it could over the longer run cause some unintended consequences