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US banks grow assets beneath regulatory radar

17 April 2018Banks, Risk CommentaryBank of America, Citigroup, JP Morgan, Wells FargoNick Dunbar

Since adopting Basel III reporting standards three years ago, the biggest US banks have started reducing risk weights while increasing lending. Is this a reflection of a healthy US economy or European-style gaming of internal models?

Steinhoff, the banks and the bezzle

2 March 2018Articles, Banks, Risk CommentaryNick Dunbar

A scandal at South African group Steinhoff has hit the large banks that lent $1.6bn to the company’s largest shareholder. Differences in the way banks treated the exposure highlight hidden risks in the financial system.

Brexit and HSBC’s risk reduction bonuses

15 March 2017Articles, Banks, Risk CommentaryNick Dunbar

HSBC paid senior executives millions in bonuses for achieving RWA reduction targets. But how much was the result of their efforts?

ETFs, capital arbitrage and Morgan Stanley

22 January 2017Risk Commentaryderivative assets, exchange-traded funds, high yield bonds, incremental risk charge, Market RWAs, Morgan Stanley, securities financingNick Dunbar

After making dramatic cuts to its balance sheet and capital requirements, Morgan Stanley is boosting returns in fixed income. Is the bank using bond ETFs for regulatory capital arbitrage?

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