Reuters: Basel Committee okays use of external credit ratings for banks

LONDON, Oct 10 (Reuters) – Global banking regulators have decided to allow lenders to keep using credit rating agencies to help them determine how much capital they need to hold to cover the risks of borrowers getting into trouble, a top central banker said on Friday.

Stefan Ingves, head of the Swedish central bank and chairman of the Basel Committee on Banking Supervision, said few banks were happy with proposals made in March to revise a ‘standardised’ approach for calculating credit risk. This refers to actual losses or fall in credit quality of the individuals, companies and other banks a lender deals with.

Revised proposals would be published by the end of the year, Ingves said.

The full article is available here.

Related Posts

Previous Post
New from the BIS: the impact of CCP margin policies on repo markets
Next Post
Finadium: Asset Managers and the Uses of Collateral

Related Posts

Fill out this field
Fill out this field
Please enter a valid email address.

Menu
X

Reset password

Create an account