Capital requirements

Basel rules set to change

Despite the difficulty and cost involved, even banks accept that aspects of the old financial regulatory regime must yield their place and go. Patrick Blum asks industry consultants what Basel II reforms they expect to see in 2010, and how firms can…

It will end in tiers

Regulators are intent on bolstering capital at financial institutions, with most citing common equity as the key component needed to absorb losses in financial downturns. What implications does this have for mutually owned institutions, and what can they…

Capital punishment?

At a landmark meeting early this month, the Basel Committee will finalise its proposals for a host of measures, including counter-cyclical capital buffers and a leverage ratio. The consultation in early 2010 will be the industry’s last chance to fight…

Corporate statement: Retirement strategies

Recently, reduced household incomes from the decline in home and equity prices, as well as rising unemployment, have forced Americans to reconsider how they spend and invest their personal finances. For those in retirement, wealth preservation and…

Confidence crunch

Many financial institutions calibrate their required level of economic capital by considering the probability of default associated with a target debt rating. However, as the financial crisis has shown, confidence in a bank can erode before its Tier I…

G-20: High hopes

“We want growth without cycles of boom and bust and markets that foster responsibility not recklessness” – G-20 leaders at the Pittsburgh summit