Asia corporates unfairly ‘penalised’ by CVA capital charge
Europe's decision to unilaterally provide a credit valuation adjustment (CVA) exemption for banks in derivatives trades with corporates should be applied in Asia, otherwise firms in the region will be "penalised" with uncompetitive pricing that could spill over into problems with the real economy, according to one senior Asia-based banker.
Hong Kong, Singapore and Australia implemented the CVA aspect of the Basel III accord on January 1 this year meaning that banks regulated in those localities
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Basel Committee
Basel III implementation is behind deadline, says committee
Only a third of member jurisdictions have adopted standards
Nepal central bank cautious on Basel III counter-cyclical buffer
Central bank to study need for counter-cyclical buffer in a developing economy
Ingves addresses Basel 25th anniversary audience
Riksbank governor and Basel committee chair highlights five developments over the past quarter of a century, including a shift from a micro- to a macro-prudential perspective
Basel update shows biggest banks' CET1 position improving
Latest periodical review of progress towards Basel III standards shows the world's biggest banks are closing the gap on core Tier I capital requirements; US issues guidelines for Basel compliance
Australia mandates OTC clearing to ensure substituted compliance
Global regulatory agenda drives switch from market-based incentives to clearing
Basel’s ‘99.9% standard’ for op risk is unreliable, says ORX chief
Giulio Mignola says Basel II's 'one-in-a-thousand-years' threshold for tail risk is fundamentally flawed
Basel securitisation reform creates 'perverse incentives’, says senior Japanese banker
Inconsistent rules are damaging financial intermediation, according to Takashi Oyama of Norinchukin Bank
Banks push alternative to Basel Committee securitisation model
Basel proposals would kill European market, banks warn – and some regulators sympathise