The pace of innovation and the volume of activity in credit derivatives are heating up, but the instruments are not yet ready to become a significant force in risk management for banks, according to a report by Standard & Poor’s. ‘As promising as the credit derivative technology is, it is not yet a panacea for credit problems of banking systems around the world,’ said credit analyst Tanya Azarchs. ‘It has not, as is commonly believed, helped banks avoid meaningful amounts of losses in the current credit cycle.’ The reasons are three-fold: Much of the activity is dealer trading-related; the preponderance of credit protection available is on investment-grade names, which are not where the greatest risks are found; and for structured transactions, the risks are generally retained by banks. Credit derivatives, in their increasingly complex forms, will clearly pose challenges to accounting standards, regulators, and analysts, the report concluded.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more