There has been a lot of debate around the world over the new Basel III accord and what it means for banks. A set of blog articles have been published on the Causal Capital webpage which discuss various aspects of this new mandate.
Wrong Way Risk
Wrong Way Risk occurs when exposure to a counterparty is adversely correlated with the credit quality of that counterparty and features heavily in the Basel III requirements. This blog article discusses what drives wrong way risk and the measurement difficulties in banks. There is a complete presentation which can be downloaded from the page that goes into measuring wrong way risk in greater detail.
New Insight for an old resolve
Understanding some of the flaws in Basel II and investigating the outcome from specific factors of the Credit Crisis allows us to understand why Basel III has been structured in the way that it has. This is a review of what brought Basel III into existence.
What is on the menu for Basel III
Basel III is going to impact regulators, banks and the broader economy in different ways. Have a look at a complete summary on what are the key elements of Basel III.
Thinking about liquidity differently
Liquidity Risk is a major area of focus for Basel III, in fact there is a complete BIS requirements outline alone on liquidity risk. This article is the first part of a two part series on liquidity risk and sets the scene on the key aspects of Liquidity Risk management.
As we publish more on Basel III or other areas of risk management, we'll keep the links coming up here.