I think I read it in a Basel wikipedia entry at some stage. It might be wrong.
Risk weightings differ by country - published by the local prudential regulator. The only list I ever found was for New Zealand once, and now I can't find it any more.
It will be interesting to see ff APRA decide to go ahead and require the local banks to implement all of the Basel III. Some of the provisions appear to be, on the surface, quite expensive for local banks OTC derivative books. There has been some rumbling recently in the AFR about 'picking and choosing' which of the provisions to implement. I think most European banks would fail both the capital and liquidity requirements even now, particularly Deutche and Barclays. The FSA is pretty toothless though, so we will have to wait and see.
Some interesting bits
Quote:
(b) Banks will be subject to a capital charge for potential mark-to-market losses (ie credit valuation adjustment – CVA – risk) associated with a deterioration in the credit worthiness of a counterparty. While the Basel II standard covers the risk of a counterparty default, it does not address such CVA risk, which during the financial crisis was a greater source of losses than those arising from outright defaults.
This one is very interesting. Basically they are talking about credit migration associated with counterparty default. Simulating this is a lot more difficult than VaR, especially on a daily basis. I vaguely recall talk about running the credit migration simulation once to get a risk weighting for each counterparty and applying that their daily VaR exposures. The alternative is to move OTC instruments to something they refer to as a CCP, which appears to be a global derivative clearing house for banks. I think this is the provision the local banks were probably complaining about so vigorously about given the size of their OTC derivatives notional. http://www.rba.gov.au/publications/bulletin/2012/dec/5.html
the wonderful thing here is we can pass pictures and videos without this type of thing (april sounds a bit far away though) 'will probably start to rise towards year end or into the new year'
Does febuary 2014 sound fair?
An independent member could quickly determine the 'vibe' of fixed rates in febuary - if it's too close to call with mixed signals from different providers it would mean nothing has really changed
Poons Ill bet you 2 jpegs of attractive women plus the video clip of your choice it doesn't work out that way
Quote:
Ok, sounds like a fair bet...
Terms of bet? Call ends 2 days after RBA decision 2nd Tuesday April 2014. Fixed rates go up prior to then.. I win They do not, you win.?
Happy to see term of bet expire first to see what happens further with rates
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
I thought we were waiting until 2nd Tuesday April 2014... Poons we are still in 2013
either way just confirming the winner gets to be specific with the jpeg prize ie. he could ask for a 5 ft, 52 kg, 28y.o. brunette with blue eyes if he wanted to..
newjez
9 Aug 2013, 08:03 PM
What was that movie?
Sorry Newjez, just noticed this post and have no idea
I think that a moot point though Goss.. I think mortgage rates are pretty much at their bottom. Maybe some special deal honeymoon rates for new loans into the future. A reduction of RBA rate to .25% won't equate to a drop in mortgage rates by a couple of percentage points. Maybe .5%
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
I think that a moot point though Goss.. I think mortgage rates are pretty much at their bottom. Maybe some special deal honeymoon rates for new loans into the future. A reduction of RBA rate to .25% won't equate to a drop in mortgage rates by a couple of percentage points. Maybe .5%
Poons I have had a quick look as to what we were betting on that night and im not actually 100% clear on what the bet was actually about
Were we betting on fixed rates being higher in 2014 than August 2013 (after re reading I suspect this is where we might have been going with it)
Ill be honest in saying I do remember there being talk of how much the banks would pass on from RBA cuts at the time and remember us having different theories. Reading your comment above I still feel the same though. I believe if the RBA were to cut that hard banks would pass on more than what you're suggesting.
If i have lost the bet, here's your video clip. If I haven't lost and I end up winning, you owe me 2 videos.. deal?
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
Poons I have had a quick look as to what we were betting on that night and im not actually 100% clear on what the bet was actually about
Were we betting on fixed rates being higher in 2014 than August 2013 (after re reading I suspect this is where we might have been going with it)
Ill be honest in saying I do remember there being talk of how much the banks would pass on from RBA cuts at the time and remember us having different theories. Reading your comment above I still feel the same though. I believe if the RBA were to cut that hard banks would pass on more than what you're suggesting.
If i have lost the bet, here's your video clip. If I haven't lost and I end up winning, you owe me 2 videos.. deal?
Quote:
Ok, sounds like a fair bet...
Terms of bet? Call ends 2 days after RBA decision 2nd Tuesday April 2014. Fixed rates go up prior to then.. I win They do not, you win.?
Technically by the terms above I would consider it a win on my behalf, Fixed rates did go up prior to the end date specified.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
I don't understand why you would say 'Happy to see term of bet expire first to see what happens further with rates '
If they come back down I'd call it even.. Yes they went up, but then came back down again.... in the time frame More than happy to see what happens with the economy and what the banks feel they need to do in respect to the fixed rate.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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