Financial Stability Review
Regulatory Structure Articles
1999
2005 2004 2003 2002 2001 2000 1999 1998 1997
The
Nature of Credit Risk: the Effect of Maturity, Type of Obligor,
and Country of Domicile
(197k)
(Issue 7, November 1999)
Credit is the largest element of risk in the books of most banks and failures in the management of credit risk, by weakening individual banks and in some cases the banking system as a whole, have contributed to many episodes of financial instability. A greater understanding of the nature of credit risk, leading to improved measurement and management, would help to strengthen the international financial system.
Improving
the Stability of the International Financial System
(56k)
(Issue 6, June 1999)
Credit
Risk Modelling
(365k)
(Issue 6, June 1999)
A summary of the conference on developments in credit risk modelling and their regulatory implications that was hosted by the Bank in the autumn of 1998. The main goal was to look at evidence on the construction and reliability of credit risk models. This issue has financial stability implications in terms of both the reliance that firms can place on models to improve their credit risk management and the reliance that regulators can place on them to calculate capital requirements for credit risk, which form the main prudential buffer in banks' balance sheets.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
