Regulators’ remorse: SVB and the case for IRRBB capital charges
Basel Committee chair among those who say Pillar 1 capital requirement could have helped control SVB risks
Expressions of regulatory remorse are a rare commodity. Yet, after the failure of Silicon Valley Bank in March, certain influential regulators wonder whether they should have pushed harder for strict rules on minimal capital charges against the interest rate risk in banks’ loan and deposit books.
Pablo Hernández de Cos, chair of the Basel Committee on Banking Supervision, is one such. At an April 12 roundtable held in Washington DC, he said Basel’s 2016 standards could have applied a so-called
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