Basel Becomes Babel

A very good analysis done on the various Basel agreements at Bloomberg here are some highlights from it.traders

The first Basel agreement on global banking regulation, adopted in 1988, was 30 pages long and relied on simple arithmetic. The latest update, known as Basel III, runs to 509 pages and includes 78 calculus equations.

The complexity is emblematic of what happened over the past four years Continue reading “Basel Becomes Babel”

Banks Disclosures on enhancing the risks

A report on enhancing bank risk disclosures. Their objectives are sensible, and seven fundamental principles are suggested:

Hello World Bank for International Settlements Warns

Yesterday I was going through a very interesting piece delivered by Jaime Caruana . General manager of the Bank for International Settlements (BIS) and he also hold the position in the past to be a former governor of Bank of Spain.

Well the message from the report of BIS is very clear that not enough being done to repair finances of Banks & Governments – cheap central-bank money props up the lame ducks. Another major remark from BIS Continue reading “Hello World Bank for International Settlements Warns”

Review of the trading book – A consultative document

Bank For International Settlements (BIS) has come out with a consultative documents to revise market risk framework and the proposed a number of specific measures to improve trading book capital requirements. These proposals reflect the Committee‘s increased focus on achieving a regulatory framework that can be implemented consistently by supervisors and which achieves comparable levels of capital across jurisdictions. Continue reading “Review of the trading book – A consultative document”