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Risk Management News Updates, January 19th 2011

This week's risk management news includes EBA's second round of stress tests, Nigeria's risk-based guidelines for banks, and Korea's review of financial derivatives trades regulations

January 19, 2011 | Aditya Puri

EBA to conduct second round of stress tests
The European Banking Authority (EBA), in collaboration with national supervisory bodies, the European Systemic Risk Board, the European Central Bank and the European Commission, will be conducting a second round of stress tests in the first three months of 2011 to further evaluate the robustness of Europe’s banks. The results will be published in June or July 2011.

Nigeria’s CBN unveils risk-based framework for banks
The Central Bank of Nigeria (CBN) has unveiled guidelines for the evaluation of financial institutions by assessing their risk profile, financial condition, risk management procedures and adherence to relevant regulations. It is also in compliance with the Basel Core Principles on Supervision and prepares financial institutions for the eventual implementation of the Basel II Capital Accord.

Korea’s FSS reviewing financial derivatives trade regulations
The Financial Supervisory Services (FSS), Korea’s financial regulator, is reviewing guidelines concerning financial derivatives trade and may require financial institutions with less than $444.2 million in total assets or investment managers with funds amounting to less than about $898 billion to present margin deposits. The FSS may also establish regulations that restrict daily trade volume, asking investors to restrict derivatives trades to less than 10 times the worth of their deposits.

Re-disseminated by The Asian Banker

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Risk And Regulation Working Group

Keywords:EBA, CBN, FSS