Models, Supervision Determine Banks’ Risk Weights – Report
Investors have a hard time comparing the riskiness of the major global banks because there are differences in how each bank calculates the potential danger of their assets, according to a report by the Basel Committee on Banking Supervision. Based on tests of how 15 major banks assign risks to a [...]
Investors have a hard time comparing the riskiness of the major global banks because there are differences in how each bank calculates the potential danger of their assets, according to a report by the Basel Committee on Banking Supervision.
Based on tests of how 15 major banks assign risks to a simple, hypothetical portfolio of financial instruments, the Basel Committee found differences, either due to supervisory decisions or due to the in-house models that banks … [visit DailyMarkets.com to read more] or compare Credit Card Rewards or Best Credit Cards