Basel III Endgame and its consequences for U.S. Banks, Capital Adequacy, Risk and Global Competition

Basel III Endgame describes the last part of post-crisis regulations implemented to improve resilience, transparency and comparability across the global financial sector. The intended implementation ...
JD Supra

The Standard Formula: A Guide to Solvency II – Chapter 9: Internal Models

There are two main methods of calculating the solvency capital requirement (SCR) under Solvency II, the “standard formula” and “internal model” methods: (a) The standard formula method, as its name ...
San Francisco Fed

Internal Risk Models and the Estimation of Default Probabilities

A major advancement in risk management among large financial institutions has been the development of internal risk models. The models encompass institutions’ procedures and techniques for assessing ...
JD Supra

ECB Streamlines How It Supervises Banks' Internal Models

The European Central Bank (ECB) has announced changes to streamline the supervision of banks' internal models for credit risk, aimed at making the approval process for material model changes faster ...
The Hill

The Fed’s bank stress test proposal would only heighten uncertainty

The justifications for the proposed changes to large bank regulatory capital requirements in the so-called “Basel III end-game” Notice of Proposed Rulemaking are schizophrenic. Regulators argue that ...