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Russian Banking Rebirth
(April 2006)
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Register Now for In-Depth Coverage of theRussian Banking Market.
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Basel 1A heralds change in direction
(January 2006)
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Facing a rising chorus of “whoa” from bankers and Congress, the U.S. regulators agree to try to level the Basel II landscape by making revisions to Basel 1 that would apply to the vast majority of banks not required or electing to use Basel II. These revisions have been dubbed Basel 1A. The proposed changes, however, raise new concerns about whether reduced capital — even with enhanced risk tools — really serves the industry well.
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Coping with Ops Risk Evolution.
(April
2005)
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“We have no rules. We have no guidelines. We have a due date. I feel your pain.” So remarked a senior U.S. regulator to a roomful of bankers still trying to get their organizations positioned for the impending Basel II capital framework. Most interesting was that most of the banks represented are not required to use the new rules. Also: a look at First Horizon's ops risk org chart.
Op Risk Presentation (pdf)
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Bad rap on Russian banking?
(December
2004)
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A nuanced look at the state of the Russian banking industry and Basel II - and what lies ahead for foreign bank competitors.
Russian banking regulators understand that good banking and foreign bank competition are as necessary to long-term economic success as the formation of durable enterprises. Russian bankers have come to view Basel II as an opportunity to gain a competitive advantage and build a more stable and efficient banking system.
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Who will choose
Basel II?
(November
2004)
by Jack Milligan, freelance writer
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The largest U.S. banking organizations have no choice but to hew to the new capital rules. Other large banks, however, wonder whether the extra work will be worth it. Problem is, they won't know until later, but it takes years of work to get ready.
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A
European view of global banking standards
(April
2004)
Interview
with
Tommaso Padoa-Schioppa
Chairman, Committee on Payments and Settlements;
Executive Board,
European Central Bank
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Though
the Basel process does not legally exist, it has gone
further than almost any other standard-setter.
The World Bank and the IMF are charged with enforcing
the standards set by the Committee on Payment and
Settlement Systems (CPSS), a Basel-based group created
by the G-10 central banks. Dr .Padoa-Schioppa gives
his view of global banking standards and why the Basel
process has been so successful.
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Will
a financially unified Europe grab the lead from the
U.S?
(April
2004)
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In
the U.S. there is no consensus among bank supervisors
regarding the extent of Basel II application within
the banking industry.
Unless U.S. bankers engage more fully in the Basel
Accord process, the creation of a set of inimical
standards could undermine today's American domination
of international financial markets.
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Looking
for that fine line
(January
2004)
Interview
with
Cynthia
Glassman
Commissioner
Securities & Exchange Commission
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Will
banks be forced to 'pushout' any brokerage-like
business?
The Securities and Exchange Commission's efforts
to create rules for bank managers to control the
risks to their customers centered on the difficulty
in creating rules for trust departments' securities
broking operations.
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New
CEO takes the helm at an evolving BIS
(December
2003)
Interview
with
Malcolm
Knight
CEO & General Manager
Bank for International Settlements
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Changes
in risk management
Globalization, diversification, and increased competition,
especially among institutions that have traditionally
been treated seperately in the financial system, create
real challenges for the creation of new risk management
standards by the Basel Committee on Banking Supervision.
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Will
Basel II affect the competitive landscape?
(September
2003)
Interview
with
Jamie
Caruana
Chairman
Basel Committee on
Banking Supervision
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The
evolving role of bank supervisors and the committee's
upcoming agenda.
Newly elected Basel Committee Chairman Caruana, Governor
of the Bank of Spain, gives his views on the revised
Basel capital accord, relative to its potential effects
on competition and risk management in banking markets |
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'B2
Lite' it's not
(June
2003)
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CP3
on capital reform; the most sweeping changes in solvency
standards.
In the latest consultative paper on Capital reform to
the international banking community, bankers who longed
for a return to a simpler standard of capital solvency
were surely disappointed. |
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New
Basel Accord: sound regulation or crushing complexity?
(March
2003)
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Part
of the operational risk problem is that large banks
compete with non-bank money managers, recordkeepers,
disbursement agents and transaction processors. "The
result under the Basel proposal is an uneven playing
field--creating an unneccessary 'tax' on banking licenses,
and a competitive disadvantage for banks" argues
David Spina, CEO State Street Bank. |
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Coping
with counterparty risk
(December
2002)
Interview
with
Michael
Alix
Chief Credit Officer
Bear Stearns
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"As
a creditor, I think in many cases it's actually easier
to deal with situations where you don't have an external
rating, because you can demand more information directly
from a counterparty client." |
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N.Y. Fed's approach
to risk
(October
2002)
Interview
with
William
L. Rutledge, EVP
Senior Bank Supervisor
N.Y. Federal Reserve Bank
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The
best role models for any banker struggling to comprehend
the vast totality of the new capital adequacy framework
may actually lay within the New York Fed itself, most
specifically in its revamped risk management structure,
which was designed to reflect and redistribute the expertise
its examiners acquire in their daily interactions with
some of the world’s largest and most complex banking
organizations. |
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Can
you still
"know your counterparty"
in the
Age of Enron?
(April
2002)
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Larger
banks, especially those adopting the more advanced methods
in Basel II for calculating regulatory capital, will
find their loss histories skewed by the Enron spike.
Over time, lenders with a pattern
of above-par losses in complex credits, such as Enron
and Global Crossing, will likely find their supervisors
less willing to accept the bank’s internal risk
ratings for similar credits in computing regulatory
capital. |
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Where
is supervision heading?
(September
2001)
Interview
with
Laurence
Meyer
Governor
Federal Reserve Board
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The
current thinking behind changes in big-bank supervision
could have major influences on other institutions. |
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The
'other' regulator
(August
2001)
Interview
with
Andrew
Crockett
General Manager
Bank for International Settlements
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BIS
acts as standard-setter to the major payment systems;
policy-maker for regulatory capital in complex banking
organizations; and risk-limiter of financial instruments
and practices for the world's financial engineers. Andrew
Crockett speaks about "Basel II", provisioning,
and the "art of supervision". |
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A
new breed of banker; the 'risk pillar' strategist
(June
2001)
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A
new breed of strategist, one who looks for an edge in
each 'risk pillar' is appearing to help bankers find
ways to minimize capital charges. That search, to protect
a competitive edge, will start inside the bank itself. |
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Capital
rule change could dictate banks' GLB plans
(November
2000)
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While asset
levels may not be a distinguishing characteristic for
Financial Holding Companies (FHC), their capital levels
most certainly will be. Approved FHCs which drop to
a Fed rating of "adequately capitalized" may
be forced to divest some affiliates. |
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Rethinking
the Framework: Checked your commitments lately?
(December
1999 -
January 2000)
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Out
with the old Basel Accord, but what will be the new?
The reformers are recommending changes which are creating
real controversies, such as reliance on rating agencies
and charges for operational risks. |
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