Since its introduction the banking industry has had to make significant changes in order to meet Basel III’s strict set of requirements. This white paper reviews capital, risk management and technological challenges that the banking industry is facing in order to become Basel III compliant.
The global credit crisis of 2007 caused extreme volatility within the financial system and exposed weaknesses within risk management practices. This white paper reviews the various steps banks are taking to improve their risk management techniques, looking at the benefits and pitfalls of each.
This white paper explores the current credit valuation adjustment (CVA) landscape, looking at the different challenges of implementation. It discusses the various CVA strategies that are available to banks and provides insight to those looking to implement CVA projects effectively.
One of the most important, and also controversial, reforms under the Basel III framework is the introduction of credit valuation adjustment into calculations of counterparty credit risk capital. Baker & McKenzie analyse Article 375 on eligible hedges to see what guidance it can provide.
For the first time in banking regulation there are explicit requirements for accuracy, completeness and timeliness in the aggregation of risk data. This white paper considers these obligations as set out in Basel III, and discusses how to build the systems and processes that can best ensure cost…
As regulators reviews key lessons from the financial crisis, banks face new requirements to ensure that their information technology and data architectures are adequate in supporting the broad management of financial risks. This white paper discusses how this can be achieved.
Credit valuation adjustment (CVA) has been at the forefront of many discussions since the 2007–2008 financial crisis as a result of losses taken by major market participants due to counterparty defaults on derivatives. Basel III and threatened clearing requirements are driving change.
A 2012 survey of global financial institutions, sponsored by Oracle Financial Services, has explored how firms are coping with the new macro-prudential regulatory environment. While many financial institutions see the new requirements as an opportunity to differentiate themselves, challenges in…
Around the world, central bankers, regulators and governments have responded to the financial crisis with new regulation and legislation. The cornerstone of this global initiative to contain risk is Basel III – sweeping new regulatory standards for banks on capital adequacy and liquidity. These new…
Securitised debt has, at best, played a supporting role in Asia over the past decade or so. No sooner did issuers and investors begin to embrace the product than it met an unexpected hurdle that took the wind out of its sails.