This week's risk management news includes BIS' finding of factors that influence systemic risk, the test scenarios for EBA's second round of tests, proposed risk regulations for CCPs, and the Netherlands' proposal to increase supervision of its finance industry.
March 16, 2011 | The Asian Banker Editor Size as dependable sign of systemic risk, BIS says
Research published by the Bank for International Settlements has found that size is a dependable indicator of systemic importance. The research, which was based on data collated from 20 major international banks, also concluded that interbank lending and interbank borrowing are also trustworthy indicators of systemic importance.
The full research report can be accessed here.
CPSS and IOSCO propose risk regulations for CCPs
The Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (Iosco) have released a consultation paper which proposes risk regulations for central counterparties (CCPs). The proposed regulations stress that CCPs should be able to withstand the failure of one or two of their largest clients in a stressed global market, and suggest that different standards could be enforced on different CCPs in terms of their size, products and markets.
Netherlands proposes increased supervision of financial industry
The Netherlands will be discussing proposals to increase supervision of the financial industry in the Dutch parliament. The proposals include expanding the authority of the Dutch central bank to prevent banks and insurers from failing, increased contribution from the financial sector for the supervision of the industry and a ban on commissions charged by banks and asset managers for advising consumers. Additionally, a new levy and bank tax which is aimed at covering bank guarantees in the event of failures may also be imposed in 2012.
Re-disseminated by The Asian Banker
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Risk And Regulation Working Group
