How Basel Blessed Russia And Thus Damned Its Capital Framework

Karen Shaw Petrou’s memorandum to Federal Financial Analytics clients on how Basel blessed Russia and thus damned its capital framework.

TO: Federal Financial Analytics Clients
FROM: Karen Shaw Petrou
DATE: March 18, 2016

How Basel Blessed Russia And Thus Damned Its Capital Framework

Over the past year or so, the Basel Committee addressed the growing cacophony of the global rulebook not by simplifying standards or – God forbid – considering their cumulative impact, but rather by trying to standardize the capital rules so that bank models and national discretion make nary a dent. We have analyzed Basel’s various standardization initiatives, providing clients this week with one on the revised operational-risk rules that, to sum it up, makes a mighty hash of them. However, take...