Systemic risk in financial markets

Introduction The International Monetary Fund (“IMF”) has summarised the causes of the global financial crisis in three dimensions: Flaws in financial “regulation” and “supervision”. Failure of monetary “policy” to address the build-up of systemic risk. Weak global “financial architecture”. Set out below is an analysis of these dimensions and a review of systemic risk, including […]

Basel III a reality

Introduction The global economic crisis has provided regulators with an opportunity to fundamentally restructure the approach to risk and regulation in the financial sector. The international members of the Basel Committee on Banking Supervision have collectively agreed on reforms to “strengthen global capital and liquidity rules with the aim of promoting a more resilient banking […]

Basel III and liquidity management in banks

The Basel Committee on Banking Supervision has been mentioned often in the media both during and after the financial crisis. This Committee provides a much-needed forum for regulators to meet at regular intervals and discuss cooperation on banking supervisory matters such as the management of capital under the Basel III capital accord. The aim of […]

What is liquidity risk management?

At the onset of the financial market crisis in 2007, many banks had adequate capital levels but they still ended up experiencing serious difficulties when it came to liquidity risk management.   They had failed to sufficiently accounted for their exposure to liquidity risk. Before the crisis, funding was readily available and cheap.  This created […]

Governance, Risk Management and Compliance

What is the difference between Governance, Risk Management, and Compliance? They have become an accepted terms that describe similar related actions and procedures by an organisation. The three terms are closely related, and are increasingly integrated and aligned by business wherever it is practically possible so as to avoid conflicts, wastefulness and gaps. Organisations typically […]

Bailout of Greece explained

Below is a video clip taking a lighthearted look at the bailout of Greece and just how crazy the steps taken by the Euro Countries have been. Billions of Euros have been spent in the bailout that the Euro Countries simply do not have (yet). Who knows, it’s always possible that if the politicians of […]