MiFID II, time to get prepared
The Fundamental review of the Trading Book opens a new era on regulatory perception of the embedded risks in trading positions. More importantly, it shows a strategic reversal and the willingness of regulators for a convergence between risk measurement methods (standardized approach vs advanced approach), an integrated assessment of risk types (from a silo risk assessment to a more comprehensive risk identification) and an alignment between prudential and accounting rules.
Comparative analysis between the Volcker Rule and French Banking Law.
With new stringent regulatory requirements and substantial pressure to increase their ROE, banks are facing emerging challenges in the processing of Low Default Portfolios.This paper analyzes the opportunity to build a rating scale for LDPs, as well as identifies the possibilities to optimize RWA, by studying the correlation between the number of classes within a rating scale and the impact on RWA.