Scaling operational loss data and its systemic risk implications

Digital encryption key

Failing to adopt a scaling methodology when including external data in operational risk calculations could lead to a distortion of capital charges and possibly systemic risk in a banking system relying on consortium data. Here, Roberto Torresetti and Claudio Nordio propose a scaling methodology to help overcome these shortcomings and compare the outcome with respect to alternative methodologies on a real operational data sample

Q&A: Finma’s Branson on Swiss banks and the Swiss franc

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Swiss bank regulators earned a reputation for conservatism – even among their peers – by quickly adopting a reinforced version of Basel III. But that was then, and Switzerland now needs to catch up on some issues, notably the leverage ratio, says Mark Branson, chief executive of the country’s prudential regulator

Firms weigh benefits as EU power market coupling expands

German power - renewables capacity

Day-ahead power market coupling has been in operation across the North West Europe region for over a year. To what extent has it helped prices converge, and what are the next steps aimed at bringing Europe’s electricity markets closer together?