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Fitch’s publication made the news in the Financial Times recently. An extra $566bn has been announced as the figure big banks will need to meet the tougher Basel III bank capital standards.
But how will financial institutions meet these steep capital requirements? Find out at Euromoney’s Basel III: The Resolution Conference.

Hear from commercial giants including Lloyds Banking Group, Rabobank, Commerzbank and Unicredit on their strategies for optimising capital in light of the Basel III guidelines

Maturity across the Counterparty Credit Risk (CCR) and Credit Valuation Adjustments (CVA) space varies greatly across the industry. Our recent survey provided some interesting insights as to whether banks are ready for CCR and CVA under Basel III, thanks to detailed responses from our clients and academic participants.

We found that there are clear differences of opinion between academics and practitioners particularly when it comes to Basel III readiness for CCR. The same is reflected with rega

Concentration risk is the "spread" of outstanding obligors or specifically the level of diversity that exists across a bank's loan portfolios. The lower the diversity, the higher the credit concentration risk.

In this blog post we look at the stress testing aspects around concentration risk and a presentation has also been attached to this journal which can be downloaded.

Click here to continue reading

In general only a handful of businesses correctly capture Operational Risk Loss Data and of those that do, only a small number of risk units in these firms are modelling their risk data in a coherent manner. After a bit of research on the internet and in various other channels, it has become relatively apparent that there isn't a comprehensive list of potential models which can be uses for understanding Operational Risk. I would have expected an analyst somewhere at some point in time to have do

A presentation on ISO 31000 for banks.

A presentation that looks at ISO 31000 in the banking domain. Why ISO 31000 is compatible with Basel, why ISO 31000 can value-add a Basel risk framework.

The presentation attached to this [ link ] will be delivered at the ISO 31000 conference in Paris on 21st and 22nd of May 2012.

Managing a profitable balance sheet is more challenging than ever. With Basel III and the more immediate Dodd-Frank regulation on the horizon, a tool such as FTP is vital to ensure an effective centrally managed liquidity strategy. Post-crisis, whilst the economic situation is improving, allocating sufficient liquidity costs quickly and efficiently to the correct business-line is paramount.

Karin Bergeron is a trader on the CVA desk at Scotiabank. She is responsible for pricing and hedging CVA as

The Chancellor George Osborne has warned the European Union that Britain will refuse to sign up to "idiotic" proposals under Basel III.

George Osborne has warned the European Union that Britain will refuse to sign up to "idiotic" proposals that would water down tough international rules on bank capital. 

This is a very concerning development and quite astounding actually. Let's ponder on the drop out of the UK from Basel III, just as a idea for a moment: [click here to continue reading]

The European Banking Authority released a statement indicating that gaps exist in the capital standards for about 20% of the regions top 48 largest banks. Meanwhile, the Bank for International Settlements has posted a relatively positive report on Asian banks loan reserve practices.

Are Asian banks in front of the game for capital management than their European counterparts?

Click to continue reading

Value at Risk (VaR) is often criticised. This is especially the case from those who don't use it, no surprise there and I label such propaganda as statistical xenophobia by the masses.

In this post we look at the problems with VaR and what can be done to improve this measure of potential downside.

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Basel III includes a new standard for Liquidity Risk which seems to be tripping up a few risk analysts attempting to reach this complex requirement.

In this post, we briefly look at the possible outcomes from a poorly managed liquidity risk program and the types of initiatives banks need to consider to meet the Basel III "International framework for liquidity risk measurement, standards and monitoring."

This post contains a presentation which can be downloaded 

Click here to read more

There are a huge array of regulatory mandates planned for the financial sector in the next three to five years and the potential unwanted outcomes are probably going to be diverse and multitudinous.

Ten combined regulatory afflictions would more than likely include this lot:

[1] Closing the proprietary trading desk – Volcker

[2] A CVA charge for the trading book – Basel III

[3] The countercyclical buffer – Basel III

[4] Restrictions on the types of capital that can be held – Basel III

[5] Axing of Tie

In Europe, most banks have already implemented Basel II. The next step is complying with Basel III, which has significant add-ons compared to its predecessors – including much higher capital and liquidity requirements – specifically shining a torch on the so called global systemically important financial institutions (GSiFis). In the US, the Basel III compliance process is further complicated by the concurrent implementation of the Dodd-Frank financial-overhaul legislation.

Regulations these day

 PRESENTATION at this address : http://causalcapital.blogspot.com/2011/06/scenario-analysis-for-operational-risk.html

Progress on implementing the G20 Seoul resolve for strengthening global financial stability has recently been reported as being on track.

Read more by following this link 

The purpose of the presentation is to look at some of the key hurdles for Basel III but from a counterparty risk perspective.

Key areas which have been covered include some of the following:

» Understand how new requirements of Basel III impact counterparty risk.
» Gain insight into the hurdles for Asian Local Banks & Foreign Banks in Asia.
» Review how the key phases and causal factors of the Global Financial Crisis have been translated into Basel III requirements in the context of Counterparty R

A presentation has been released by Causal Capital on how to calculate counterparty risk exposure in a bank.

The approach taken in this presentation is to look at how each department contributes to the overall framework for dimensioning Counterparty Risk measures at both a contractual and aggregated level.

The presentation can be downloaded by following this link.

Basel III cracks are starting to appear is a blog article PART 2 that reviews the differing opinions of regulators across the planet in respects to their unique implementation approaches for the Basel III capital and liquidity requirements.

Basel III cracks are starting to appear is the first part of a two part series that looks at some of the mis-conceptions being bantered around over Basel III.

In this article we argue that Basel III capital floors can't be compared with the Basel II capital approach because the entire capital and liquidity funding methods for banks is going to operate differently under the new regulation.