Basel Committee

Basel reform: why the market should decide

The 1988 Basel Accord made bank capital rules more precise. But this did not save the Japanese banking system or slow the erosion of credit intermediation by US banks. Mark Brickell, managing director at JP Morgan in New York, has been an architect of…

Stress tests and risk capital

For many financial institutions, "stress tests" are an important input into processes that set risk capital allocations. In the current regulatory environment, two distinct model-based approaches for setting regulatory capital requirements include stress…