The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Why not demand that institutions that adopt the internal process (in order to reduce their capital requirements) disclose it fully?
The whole point of an internal process is that otherwise the bank will need a higher regulatory capital to cover credit risk (in particular counterparty risk) for the same portfolio.
Making it public would not change that. And that is a significant benefit. For some reason I don't manage to dig up the figures right now, but I remember that under Basel 2 and 3 it was a drop of about 40% of the credit risk capital.
Anyway I wouldn't terribly mind if risk evaluation was no longer an internal process but a public service for which the banks/insurances would be charged. Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
by Oui - Feb 4 23 comments
by Frank Schnittger - Feb 2 8 comments
by Frank Schnittger - Jan 26 3 comments
by Frank Schnittger - Jan 31 3 comments
by Frank Schnittger - Jan 22 3 comments
by Cat - Jan 25 61 comments
by Oui - Jan 9 21 comments
by gmoke - Jan 20
by Oui - Feb 423 comments
by Oui - Feb 311 comments
by Frank Schnittger - Feb 28 comments
by Oui - Feb 275 comments
by Oui - Feb 16 comments
by Frank Schnittger - Jan 313 comments
by gmoke - Jan 29
by Oui - Jan 2732 comments
by Frank Schnittger - Jan 263 comments
by Cat - Jan 2561 comments
by Frank Schnittger - Jan 223 comments
by Oui - Jan 2110 comments
by Oui - Jan 21
by Oui - Jan 20
by Oui - Jan 1841 comments
by Oui - Jan 1591 comments
by Oui - Jan 145 comments
by Frank Schnittger - Jan 1328 comments
by Oui - Jan 1221 comments