Article ID: bdd3922429be552b34d8adaa40b1379380e09c575ae7b97c28b44618a6940572
Source ID: regulatory:risk.net
Published At: -
Extraction Method: trafilatura
URL: https://www.risk.net/regulation/7963695/floored-basel-iii-rethink-upsets-irb-dominance
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For years, banks in the European Union have relied on credit risk models to calculate the bulk of their capital requirements. But the heyday of internal credit risk capital models may be over. Modelling diehards lament the rise of cruder standardised regulator-set metrics in determining capital levels, but even some supporters of the internal ratings-based (IRB) approach think it needs taking down Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content. To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact info@risk.net to find out more. You are currently unable to copy this content. Please contact info@risk.net to find out more. Copyright Infopro Digital Limited. All rights reserved. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy. If you would like to purchase additional rights please email info@risk.net Copyright Infopro Digital Limited. All rights reserved. You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5. If you would like to purchase additional rights please email info@risk.net More on Regulation Banks urge Singapore to relax exposure limit on crypto assets Lower capital for tokenisation and stablecoins welcomed, but cap will curb bank involvement for now Larger EU players move slower on clearing relocation, says Esma Active accounts rule driving smaller firms onshore; regulator ready for bigger role if lawmakers want BoE’s crisis lending plan hits buffers Scepticism greets regulator’s proposal to increase releasable leverage capital buffers BoE’s leverage ratio rejig to hit HSBC and StanChart Proposed changes aim to rebalance scales in favour of domestic lending Small UK lenders set to escape leverage ratio ratchet BoE’s planned economic indexation of tougher prudential thresholds could ease capital planning US Basel III will provide reprieve for clearing, but no release Worst excesses of original endgame proposal avoided, but increased capacity still seen as unlikely Have regulators gone soft on enforcement? (And should we care?) US agencies are scaling back punishments for technical rule breaches, raising concerns that small but crucial risks may be ignored How US regulators could stop management driving Camels Supporters flag disconnect from other indicators; critics fear early warnings will go unnoticed
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