U.S. regulators advance “super-equivalent” approach in loss-absorbance proposal, Complinet

Second, the LTD numbers may prove to be erroneous. “Just like in the past, banks could game their risk-weighted calculations to come up with lower than adequate levels of requisite LTD,” said Mayra Rodriguez Valladares, managing principal at MRV Associates, over an interview with Thomson Reuters. “Unless the Basel Committee overhauls its approach to risk-weighted calculations, as it intends to, I do not see how this can be addressed properly.”

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