Risk.net
Insurance payouts could allow banks to pare back capital without equivalent reduction in risk, says paper
Banks could be left without sufficient capital to cover fat-tailed risks such as a natural disaster Print this page
Recent research has reignited debate over how banks use insurance to reduce operational risk capital, with experts warning that incoming rules may encourage firms to “arbitrage” the system.
The standardised approach for operational risk allows banks to deduct insurance payouts from their op risk capital calculation. Marco Migueis, an economist with the US Federal Reserve Board, says this may incentivise banks to insure predictable, small-ticket op risk losses at the expense of large, black-swan
iTWire Tuesday, 06 April 2021 11:36 Enboarder raises $6.6 million in funding round
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Global HR technology company Enboarder has closed a $6.6 million (US$5m) series A2 funding round.
The Austin, Texas-based Enboarder says it plans to use the investment to expand its offering to become an “all-encompassing employee experience platform” as well as “strengthen its existing employee onboarding offerings to accommodate remote and blended ways of working”.
The funding round was led by top-tier US VC firm Next Coast Ventures, with existing investors, GreyCroft and Stage 2 Capital, also participating.
Next Coast Ventures co-founder and managing director Tom Ball said: “Enboarder has built a unique technology solution that is upending profoundly antiquated employee processes, while also delivering dramatic efficiency improvements and delightful experiences to customers and their employees.
Risk.net
Credit-sensitive SOFR add-on could be included in Isda’s interest rate definitions by mid-April Print this page
New standards are being drawn up for trading in swaps referencing Bloomberg’s short-term bank yield index (BSBY), one of a handful of credit-sensitive benchmarks vying for a place in the post-Libor markets.
The International Swaps and Derivatives Association has created documentation that would govern trading in BSBY swaps, which was sent to members on March 23. Following a comment period, the new benchmark will be added to the trade body’s interest rate definitions in mid-April.
“We currently
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iTWire Thursday, 01 April 2021 13:21 Hitachi to acquire US digital engineering services company GlobalLogic Featured
Japanese manufacturing giant Hitachi is set to acquire US-headquartered digital engineering services company GlobalLogic.
Hitachi announced on Thursday that the acquisition is based on the definitive agreement among Hitachi Global Digital Holdings Corporation, a US subsidiary, and GlobalLogic Worldwide Holdings, Inc., the parent company of GlobalLogic.
The transaction is subject to customary conditions and regulatory approvals and expected to be completed by the end of July 2021.
Hitachi says the acquisition will accelerate the digital transformation of “social infrastructure on a global scale” by aligning GlobalLogic s advanced digital engineering services with Hitachi’s Lumada portfolio.