The Basel Committee on Banking Supervision last Tuesday issued new “Guidelines on the prudential treatment of problem assets.” The guidelines, which Moodys says is “positive for banks,” seek to create uniformity across jurisdictions in how problem assets are treated, but there are notable exceptions to the regulations. The move came after a Basel committee voiced concern over bank risk controls. New Basel definition covers defaults with the exception of derivatives The new Basel definition of nonperforming exposures is designed to supplement not replace other regulatory definition of a bank’s “impaired” assets. The goal is to make the international comparison of…
New Basel Guidelines Categorize Bank Risk Exposures
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
Comments are closed.