Capital requirements
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…
New FSA liquidity rules aim to strengthen UK banking industry
David Ellis and Silvano Stagni consider whether the UK is looking to lead the shape of the new regulatory order, whether there is a ‘first-mover advantage’ and whether, acting alone, it can control financial liquidity in enough depth to put the UK’s…
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…
Sponsored forum: Quantifying the qualitative – striking a balance
Sponsored by Credit Risk Management LLC and chaired by Risk, a panel of industry professionals convened in New York to discuss the dynamic between banks and capital markets, particularly on the issues of raising capital and the nature of credit analysis,…
Cebs says banks ‘sufficiently capitalised’ after EU-wide stress testing
Level 3 committee issues an update on the results of its stress tests for European banks
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
Moody’s: Basel II and CRD changes ‘positive for banks' creditworthiness’
Credit rating agency says Basel enhancements will help banks' ratings
Capital changes
Financial supervisors have reaffirmed the importance of common equity and disclosed reserves in Tier I capital. But the direction of discussions on hybrids in Tier I and the relative importance of Tier II is causing concerns in Asia. Harry Thompson…