Basel III - Thinking About Liquidity Risk Differently part 1

Market Liquidity and Funding Liquidity are symmetrical aligned intertwined risks which feature heavily in the Basel III accord. However, Liquidity Risk isn't actually new to the accord at all but it is definitely structured in a new way with Basel this time round.

In this blog we are going to look at how Liquidity Risk worked for Basel II and the liquidity issues during the Credit Crisis. We will then follow up with an article on how Basel III approaches Liquidity Risk.

Basel III - Part 2 - What's on the menu

With each financial crisis there will inevitably be a response from the Bank for International Settlements (BIS) but then that is their main charter of work.   In our first article on Basel III, which can be found by clicking here, we discussed what brought us to this place.  I suppose that leads us unerringly to the riposte which is the purpose of this article; where to from here.
 
Continue on reading to see what's on the menu for Basel III.

Basel III - New Insight for an old resolve part 1

To understand why Basel III has been restructured in a new way, we need to take a look at what brought us to this place.

Optimizing ERM

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During a recent discussion in a risk forum, it was posed that many companies simply engage in risk management exercises to meet a regulated standard. Outside that achievement, the business value of these risk and audit practices is limited.

The Sequel to Bayesian Credit Scoring

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A short story or the sequel to Bayesian modelling is an extension of my first article on the subject which can be found here.  This first presentation seemed to generate a lot of interest and questions from readers across the planet and I wanted to address these queries by extending the article further.  Feel free to download the sequel presentation and I promised myself this was not to take more than a few hours to pull together so in places it is a tad grainy, even with the occasional hand written formula. If you would like the PowerPoint presentation for clarity sake, just touch base on linked-in and I will be more than happy to send it through to you as a presentation in email.

So what variables should we capture to measure default in a borrower, click to read more.