Latest articles from Staff

Newsletter Jun 2006: New stress-test guidance for supervisors

LONDON – Draft guidelines were issued in early June to help supervisors review the way banks test their risk management processes and capital adequacy requirements to see how well they stand up under stress. Stress testing has become increasingly important for many larger banks, and describes various techniques (quantitative and/or qualitative) used to gauge an institution’s vulnerability to exceptional, but plausible events.

Newsletter Feb 2006: Convergence push as clock ticks away to CRD-day

Supervisors have issued a flurry of guidance papers this year to underpin new capital rules.

Newsletter Feb 2006: American supervisors face delicate balancing act

As Washington bank regulators prepare their Basel II and Basel IA proposals, Ben Bernanke gets a taste of Congressional hostility By David Keefe

Newsletter Feb 2006: Robust start to EU supervisor body’s convergence drive

As CEBS starts a fresh phase, Melvyn Westlake talks to new chairwoman Danièle Nouy, and secretary-general Andrea Enria. So far, the supervisory body is winning the bankers\' support

Newsletter Feb 2006: Bid to block gold plating in EU markets Directive

Surprise anti-gold plating provision in draft MiFID measures. European Commission fights for maximum harmonisation By Melvyn Westlake

Newsletter Feb 2006: Not such a revolution after all

European supervisors say the filters they designed to protect bank regulatory capital from the vagaries of new accounting rules are a success. Impact on \'own funds\' is modest.

Newsletter Feb 2006: Bankers launch initiative to open regulatory dialogue

WASHINGTON – A major initiative aimed at putting bank regulation on a new footing is to be launched in March by the Institute of International Finance (IIF), which represents some 340 banks and investment firms around the world. An IIF Special Committee, co-chaired by Peter Wuffli, group chief executive at UBS, and George Mathewson, chairman of the Royal Bank of Scotland, has for some weeks been preparing a report setting out the principles of regulation that could provide the future basis of an understanding between banks and regulators.

Newsletter Feb 2006: UK regulator warns hedge funds over valuations

LONDON – A warning about the potential valuation problems that could face hedge funds investing in illiquid instruments is given in the Financial Risk Outlook 2006 (FRO) published in late January by the Financial Services Authority, Britain’s financial regulator. Hedge funds have been increasing their activities in less liquid asset classes such as distressed debt, complex derivatives, real estate and private equity, says the FRO, and this is giving rise to new risks.

Newsletter Feb 2006: Global corporate defaults near record low in 2005

NEW YORK – Global corporate default rate for investment-grade and speculative-grade entities remained near all-time “lows” in 2005, according to the Standard and Poor’s (S&P) credit rating agency. A total of 37 corporate defaults were recorded globally, which is the lowest number since 1997, and not far above the low levels of the mid-1990s. Corporate defaults have been falling steadily since the peak 229 in 2001 (51 in 2004), according to a report published by S&P in early February.*

Newsletter Feb 2006: Market associations link up over regulatory issues

LONDON – In a move aimed at dealing with regulatory and legal issues more effectively, three leading trade associations are joining forces to create a new coordinating body to be known as the Global Capital Markets Board (GCMB).