Risk

FSA's Sants heralds "supervisory revolution"

Limitations of a purely principles-based regulatory regime have to be recognised, Hector Sants, the chief executive of the Financial Services Authority (FSA), the British industry regulator, has conceded.

Canada's Longworth faults VaR

Methodologies based on Value at Risk (VaR) that are too dependent on short historical samples cause procyclicality, said David Longworth, a deputy governor of the Bank of Canada.

RBI's Gopinath on CRAs

Capital requirements that are based solely on credit ratings will need to be replaced by a more granular and nuanced approach, said Shyamala Gopinath, a deputy governor of the Reserve Bank of India.

FSF's Draghi on macro-prudential supervision

Every financial institution capable of creating systemic risk will be subject to supervision, Mario Draghi, the governor of the Bank of Italy and the chairman of the Financial Stability Forum, has warned.

City regulator resigns after furore

Sir James Crosby has resigned as deputy chairman of the Financial Services Authority (FSA) in Britain, following allegations that he sacked a senior risk manager at HBOS, a bank Crosby headed, who raised concerns over the risk exposure of the bank.

Assets are better kept with SWFs

Countries with a large foreign asset base tend to establish sovereign wealth funds as central banks' portfolio diversification tends is limited, says a new paper from the San Francisco Federal Reserve.

RBA justifies November cut

An attempt to reduce the risk of a sharp weakening of demand was behind the Reserve Bank of Australia's cut in the cash rate by 75 basis points to 5.25%, according to minutes of the November meeting.

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