Systemic risk in financial markets

Systemic risk

Introduction The International Monetary Fund (“IMF”) summarises causes of the global financial crisis within 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 a breakdown and analysis of these three dimensions and a close inspection of systemic […]

Basel III a reality

Basel III 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

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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?

Liquidity Risk

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

Governance Risk Management Compliance

What is the difference between Governance, Risk Management, and Compliance? They have become an accepted group term that describes similar and related actions and procedures by an organisation across all three of the areas. All three terms are closely related, and are increasingly being integrated and aligned by business wherever it is practically possible to […]

Bailout of Greece explained

Bailout of Greece

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 has been. Billions of Euros have been spent in the bailout that these countries simply do not have (yet).  Who knows, it’s always possible that if the politicians of Europe have […]