Risk.net
Banks fear prudential agencies’ move could hamper their own ability to fight financial crime Print this page
US regulators want banks to assess whether their anti-money laundering (AML) systems should be treated as models – and therefore subject to heightened scrutiny and governance standards. But many banks fear the move could slow down AML development – at the very moment the fight against financial crime demands an agile approach.
An April 9 inter-agency statement from prudential supervisors calls on banks to determine whether principles for model risk management, known as SR 11-7, should be
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Risk.net
US banks benefit from Treasury repo exemption, while EU banks report only end-quarter ratios Print this page
The US and the European Union are on track this year to implement the last piece of the Basel III liquidity framework, the Net Stable Funding Ratio (NSFR).
In the seven years that have passed since the standard was approved by the Basel Committee for Banking Supervision (BCBS), concerns about its implications for repo liquidity have escalated, and the final rules in both jurisdictions make fewer demands of big banks than previous versions.
The NSFR requires banks to hold a minimum amount of
Risk.net
Technical clarification allows subsidiary capital to be assigned as funding for consolidated group Print this page
A seemingly minor clarification in the final US net stable funding ratio (NSFR) could represent a major change to how bankers interpret the rule, by effectively allowing large banks to assign funding more easily across the group in order to comply with the ratio at a consolidated level.
“Everybody was so happy about it,” says one senior regulation official at a global systemically important bank (G-Sib). “It’s a big, big, big benefit.”
Two other liquidity managers from G-Sibs confirm this
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