Although regulators have been accused of making matters more complicated, the recent consultation issued by the Basel Committee on Banking Supervision (BCBS) on operational risk aims to simplify the process. It has proposed creating a new standardised measurement approach (SMA) to replace all existing and proposed methods of calculating regulatory capital for operational risks. Industry… Read More >>
Fed Wants New Credit Limits on Top Tier Firms
Global systemically important banks (G-SIBs), of the kind whose imprudent derivatives loan policies shook the global economy, will have their credit exposure restricted under a proposed new Federal Reserve Board single-counterparty-credit-limit rule. “In the financial crisis, we learned that the largest and most complex banks and financial institutions lent or promised to pay large amounts… Read More >>
