Regulatory Alerts1999-03-09
Added · Updated
Basel Committee Report on Banks' Interactions with Highly Leveraged Institutions
The Basel Committee on Banking Supervision issued this report to address risks arising from banks' interactions with highly leveraged institutions, particularly following the near-collapse of Long-Term Capital Management. The document identifies significant deficiencies in banks' risk management practices, including inadequate due diligence and insufficient stress testing, which expose financial systems to counterparty and systemic risks. It recommends that supervisors promote sound risk management standards, enhance market transparency, and consider direct regulatory measures if indirect approaches prove insufficient to mitigate these threats.
More like this from HKMA
HKMA published 11 documents in the last 30 days. We email you each new one the day it's published.