On Westlaw Business Currents, Christopher Elias recently posted an article about the Financial Services Authority’s (FSA) stress tests affecting many banks and building societies in the United Kingdom.
The post, titled “UK Hot Topic: FSA Stress Tests Get More Stressful,” discusses the FSA’s latest announcement of ‘reverse-stress tests’, bringing increased regulatory oversight.
Elias writes:
Reverse-stress tests mark the latest regulatory creep on banks’ capital requirements and follow amendments to the European Capital Requirement Directive which incorporates the latest recommendations of the Basel Committee on Banking Supervision (known as ‘Basel II’). Basel II sets out minimum capital requirements firms are required to meet for credit, market and operational risk and has lead to additional costs for many banks and building societies.
You can read the full post, which includes links to more analysis of reverse-stress tests, on Westlaw Business Currents.
Posted by Kevin Hunt in:
In Practice | Practice trends |
