Asia dealers question applicability of CVA to region’s markets

The credit valuation adjustment aspect of the Basel III accord will come into force in six months’ time but the absence of instruments in Asia markets to hedge this risk has caused complaints from dealers that it’s not relevant to the region

question

Credit valuation adjustment (CVA) has moved from an obscure corner of the accounting standards book to a prominent position in the Basel III accord, mirroring the increased focus on counterparty credit risk in the banking sector following Lehman’s collapse in 2008. CVA has proved a key issue of debate in the European Union’s Capital Requirements Directive (CRD IV – the vehicle for implementing Basel III into the trade bloc’s laws) but – so far – this attention has not been matched in Asia.

Howev

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here