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Basel III

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 measur

On the surface at least, it’s hard to take away positives in the wake of the financial crisis. Yes, it taught us that we have to manage risk better, improve processes and become more transparent. But it’s the regulators globally that seem to have taken these lessons closely to heart.

With some banks still struggling to conform to Basel II requirements, Basel III is being hotly debated. It will force banks to hold more capital, and many argue that this will bring the end of ‘cheap money’. In the U

Despite recent news reports that the Basel III liquidity requirements are to be pared back, financial institutions are still facing vast regulatory challenges. They already have to hold more capital and liquidity, as well as report on this daily. Going forward, institutions will also have to demonstrate the processes and controls used to put together reliable information. Never before have risk and data management been so interwoven.

The real challenges facing institutions looking to showcase the