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Basel III Liquidity Coverage Ratio standards: The Fed raises the bar
22 Nov

Country-by-country reporting: HMT tells banks to design their own reports

The 4th Capital Requirements Directive (CRD IV) requires banks to report to their national regulators, so-called ‘country-by-country reporting’.  Individual Member States have been tasked by the EBA with issuing national standards for firms regulated under CRD IV to carry out this reporting.  The results from the UK’s Country-by-Country reporting (CBCR) for capital requirements consultation were Read More

29 Aug

€20 billion: The annual cost of OTC derivatives regulation

In its Macroeconomic impact assessment of OTC derivatives regulatory reforms, published on 26 August, the BIS have estimated the additional annual global cost of reforms as between €15 billion and €32 billion.  This huge cost, and the difference between the lower and upper brackets, makes clear the case for getting OTC reform implementation ‘right’ (see Read More

28 Aug

Icebergs and deckchairs: Carney’s announcement misses the real challenges to implementing Basel III

Today, 28 August, Mark Carney, Governor of the Bank of England, announced that UK banks compliant with Basel III capital buffers would receive marginal relief from liquidity requirements under CRD IV (read Carney’s announcement).  However, the PRA have made clear this relief will only be temporary, since EU rules require full compliance by 2018 (read Read More

18 Jul

The Faulty Riskometer: The IMF’s flawed risk toolkit

The IMF has released a working paper on Systemic Risk Monitoring detailing the policy options and methodologies available to regulators to accurately measure systemic risk. The problem is that, although touted as being a practical guide, none of the options given are a solution to the problem of “how can we measure systemic risk?” “The Read More

18 Jul

Let he who has good data cast the first stone

Given the exponential growth of reporting requirements since the crisis, firms often ask: ‘Where does all this data go and who has the time to look through it all?’  In fact, recent statements by regulators have made this question all the more valid given that regulators’ data systems, it is increasingly apparent, often suffer from Read More

18 Jun

Risk data aggregation: forming the view from nowhere

Without a consolidated viewpoint on what new risk data requirements mean, firms will be at a loss when it comes to determining best practice. The deadline for firms to upgrade their risk data aggregation capabilities is fast approaching. The Basel Committee for Banking Supervision’s Principles for Risk Data Aggregation and Risk Reporting are due to Read More

15 May

New intraday liquidity reporting requirements will need further alignment?

In April, the BCBS announced that internationally active banks would be required to submit intraday liquidity reports to their regulators on a monthly basis.  In their short paper, ‘Monitoring tools for intraday liquidity management’, they set out several measures of intraday liquidity, scenarios for stress testing and a reporting template.  However, there are several major Read More