Fitch: Operational RWA New Twist in Regulating US Bank Capital

From Reuters

“(The following statement was released by the rating agency) CHICAGO, February 25 (Fitch)

The Federal Reserve's move to allow the use of Basel III advanced approaches in the calculation of large banks' risk-based capital will give some institutions more flexibility in meeting capital targets. But Fitch Ratings sees accompanying increases in operational risk-weighted assets (RWA) as an additional tool for U.S. bank regulators to use in supervising capital levels in the industry.”

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Basel's New Guidance on Derivatives' Counterparties Fixes Shortcomings

From American Banker

“In 1973, when the Basel Accord was in its early gestation period, global derivatives markets were primarily comprised of exchange-traded commodity derivatives. Four decades later, the derivatives markets total about $632 trillion and are overwhelmingly over the counter.”

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Banks not ready for CVA and counterparty risk elements of Basel III says Ernst &Young

From Bobsguide

“A survey of more than 120 senior traders and chief risk officers attending a London seminar entitled ‘Managing Counterparty Risk and Basel III’ purports to show that the majority of banks have Basel lll compliance projects underway but are still not ready for the credit valuation adjustment (CVA) and counterparty risk elements of the new capital adequacy regime.”

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What's Next for Basel III?

“The Federal Reserve's Tuesday vote on Basel III capital rules resulted in mostly good news for small banks and a harsh but expected message for large ones. For institutions of all sizes much remains to be decided, however. American Banker's Donna Borak explains.”

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Basel III – A 10 minute view for non specialists

BNP Paribas Fortis presents this 10 minutes animation on Basel III for non-specialists.

This video includes changes made by the Basel Committee in January 2013. 

This weeks best reads ...

How many organizations really have business continuity management? http://www.continuitycentral.com/feature1060.html

Cyprus leaves banking union up in air - Hugo Dixon http://reut.rs/Z4uQ6I http://www.continuitycentral.com/feature1060.html

KPMG quits audit roles over insider trading allegations http://bbc.in/17pv5Rg

How Good Is Your Bank's Website Performance? http://shar.es/dEKK2

Most Basel members 'failed to meet January deadline for new regulations' http://dld.bz/cvWm7

Laiki Bank: The Cyprus bank staff hit worst of all http://bbc.in/13Z4iwn

Betray your bank before your bank betrays you http://dld.bz/cw4sf

What we are reading … 28th March 2013

Thoughts on the Move to Regulate UK Payments http://shar.es/eFQpZ

You Have The Right to Remain Paperless: The "No Check" CEO Bill of Rights http://dld.bz/cs8km

Basel Committee Cracks Down on Capital-Protection Ploy at Banks http://twb.io/YwedS0

Masked by Gibberish, the Risks Run Amok http://nyti.ms/11oBawS

What are the Benefits of In-Store Mobile Commerce? http://dld.bz/cs8jV

Barclays takes the crown at Digital Wallet Foundry http://www.finextra.com/News/FullStory.aspx?newsitemid=24664

The Next Generation of Video in Banking http://twb.io/YwnBVS

Is BlackBerry becoming a sweeter pill to swallow? http://dld.bz/cs8eq Court Favors Bank in Fraud Dispute http://dld.bz/cs8en

What we are reading … 14th March 2013

Android accounts for most mobile malware, says F-Secure http://dld.bz/cpxBX

Retailer sues Visa over data breach penalties http://www.finextra.com/News/FullStory.aspx?newsitemid=24623

GoPago Sees History Repeating With mPayments Revolution http://dld.bz/cpxBW

UK govt rejects calls to tighten banking leverage rules http://dld.bz/cpT27

How to Manage Your Project Priorities http://shar.es/enmkO

JPMorgan Chase Suffers Online Banking Outage, Confirms Cyberattack http://dld.bz/cpT26

Why Basel III Matters http://dld.bz/cpxBV

What businesses can expect to see with Google Glass http://dld.bz/cpxBT

FNB's digital boom http://businesstech.co.za/news/banking/32902/fnbs-digital-boom/

Do Banks Need Intelligence Officers? http://shar.es/jLOZM

What we are reading … 22nd February 2013

Basel Committee 'considering capital requirement reforms' and issues FX guidance http://dld.bz/cjkYy

Safaricom gets vendor to run higher capacity M-Pesa platform in Kenya http://shar.es/YFhg0

Wells Fargo overhauls ATMs for personalised service http://www.finextra.com/News/FullStory.aspx?newsitemid=24558

Mobile payments at 'the world's best bar' http://dld.bz/cjkPg

New PCI Guidance for Mobile Payments http://dld.bz/cjkKV

UK needs to take action to prepare for extreme solar weather events http://www.continuitycentral.com/news06643.html

Mobile Banking by Voice Next Up? http://dld.bz/cjkDp

A tiered approach to BYOD control http://www.continuitycentral.com/feature1049.html

What we are reading … 21st February 2013

Dilution of Basel III Threatens Global Financial Stability http://dld.bz/chE8w

Why don't banks pay me for going paperless? http://shar.es/YipVC

Visa to launch cloud, NFC payments in UK this year http://dld.bz/chE8v

A BYOD project management primer http://www.techrepublic.com/blog/project-management/a-byod-project-management-primer/5583

Cyber threats require a risk management approach http://www.continuitycentral.com/feature1050.html

EU policymakers set to discuss banking bonus cap http://dld.bz/cjk8q

Digital the future of banking: Absa http://businesstech.co.za/news/banking/31676/digital-the-future-of-banking-absa/

Poor Social Media Practices can Negatively Impact a Bank's Bottom Line http://dld.bz/chE8n

You Call That Liquid? New Basel III Liquidity Rules Ineffectual

How do you get 27 countries with different cultures and political systems, often at different points of the credit cycle, to agree on a reform plan for the global financial system?

Answer: By watering it down. <<READ MORE>>

Two Interfima Certified Courses in Budapest in March 2013

“Managing Operational Risk under Basel III” 

This is an INTERFIMA certified Operational Risk Specialist (CORS) training course being held in Budapest on 4-5 March 2013. For more information please CLICK HERE.

“International Trade Finance”

This is an INTERFIMA certified Trade Finance Specialist (CTFS) Training course being held in Budapest on 6-7 March 2013. For more information please CLICK HERE.

Two Interfima Certified Courses in Johannesburg in January 2013

“Managing Operational Risk under Basel III” 

This is an INTERFIMA certified Operational Risk Specialist (CORS) training course being held in in Johannesburg on 28-29 January 2013. For more information please CLICK HERE.

“Operations Improvement and Managing Change”

This is an INTERFIMA certified Operational Specialist (COS) Training course being held in Johannesburg on 30-31 January 2013. For more information please CLICK HERE.

Basel II is the foundation for Basel III

Our last post, “Basel III for Dummies” has raised the question about Basel II (which is after all the foundation to the Basel III upgrade). What is it? How is it structured? What does it cover?

For those wanting a bit more information we post this quick overview of Basel II framework that sets capital requirements for banks and forms the basis for Basel III. Three pillars contains the rules & support (supervisor review, market discipline) that say how much eligible regulatory capital must be held against risk-weighted assets.

Basel II is also where Operational Risk was introduced into the equation.

This short informative video covers all these bases.

Basel III for Dummies

This 10 minute animation on Basel III for non-specialists has been prepared by BNP Paribas Fortis. This Video "Basel III for dummies" is based on live presentations by Lars Machenil (CFO BNP Paribas) and Walter Rosenhek (Basel III Program Manager BNP Paribas Fortis).