This week's risk management news includes BIS Board's new vice chairman, RBI's regulations on AMA for operational risk capital charge, PBOC's guidelines on reserve requirement ratios for large banks, and FDIC's proposed new disclosure requirements for mortgage securities
January 12, 2011 | Aditya PuriMasaaki Shirakawa named vice
chairman of BIS Board
Masaaki
Shirakawa, governor of the Bank of Japan, has been appointed the vice chairman
of the board of directors of the Bank for International Settlements (BIS) for a
three year term. He succeeds Hans Tietmeyer who had held the post from
2003 until 2010.
RBI issues draft guidelines on AMA
for calculating operational risk capital charge
The Reserve Bank of India (RBI), the country’s central bank,
has released draft guidelines on Advanced Measurement Approach (AMA) for
calculating operational risk capital charge and has invited comment. It had
said in July, 2009, that banks can apply for migrating to Advanced Measurement
Approach (AMA) for Operational Risk from April 1, 2012 onwards.
PBOC issues new regulations
regarding reserve requirement ratios
The
People’s Bank of China, the country’s central bank, has issued guidelines
regarding reserve requirement ratios to a large government-owned bank. The
guidelines, which may be applicable to similar banks, include a formula for
determining a bank's reserve ratio and specific directives on basing the
adjustment of the ratios partly on modifications in banks' loan growth and
capital adequacy levels.
FDIC may impose new disclosure
requirements regarding mortgage securities on big banks
US-based Federal
Deposit Insurance Corporation (FDIC) may consider imposing new disclosure
requirements on big banks that want to package and sell mortgage securities to
investors, in an effort to prevent more home foreclosures. Banks may need to
reveal the impact to second lien loans, those extended to finance home
renovations or expensive purchases, should customers fail to pay the primary
loans or mortgages.
Re-disseminated by The Asian Banker
...Categories:
Risk And Regulation Working Group
