|
-------- Original Message --------
| Subject:
|
BIS: New Global Standards Bank Stress Tests |
| Date:
|
Wed, 20 May 2009 09:11:01 -0700 |
| From:
|
"Stephen M. Apatow" <s.m.apatow@humanitarian.net> |
| To:
|
Pascal.Lamy@wto.org, hri@int-bar.org |
Dear
Colleagues:
I would like to thank UN finance ministers in 192 UN member countries who
collaborated on emergency economic contingency measures, with a focus on unregulated
OTC derivatives exposure, related hyperinflationary spikes in the commodities
futures market and risk management for the global banking system:
ONDON/ZURICH (Reuters) - Banks will come under heavy regulatory
pressure to use the first global set of standards for testing whether they
can withstand big shocks, a top global supervisor said on Wednesday.... The
new principles for banks comprise:
-- tests should identify a wide range of risks and improve capital and liquidity
management;
-- a bank should have written policies
and procedures governing its tests and its operation documented;
-- tests should feature a range of severities, including events capable
of generating the most damage;
-- a bank should take account of simultaneous pressures in funding and asset
markets and the impact of a reduction in market liquidity;
-- tests should cover complex products such as securitized products and
include their underlying assets;
-- Banks given tougher stress testing methods: Reuters,
20 May 2009.
These measures are vital for pandemic contingency measures associated with
surveillance, containment and control strategies that could directly impact
world trade and travel during the next 12-24 months.
Related:
Looking forward
to continued feedback and dialogue,
Stephen M. Apatow
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