Lack of local currency OIS markets problematic for Asia banks

Audit Barriers

Ever since regulators identified over-the-counter derivatives as posing a major systemic risk to the banking system, they have been attempting to make the markets more transparent by driving deals towards central clearing, and fortifying counterparty credit risk management by introducing capital penalties for uncollateralised trades. Meanwhile, in the US and European markets the rates for discounting cash posted as collateral for derivatives deals have diverged significantly from Libor – the dis

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