Home  Journals  Finance and Credit  47(431) - 2010 December

Risk management specifics of banking credit organization-central counterparty in the financial market

Available online: 13 December 2010

Subject Heading: Management of risks

JEL Classification: 

The paper describes main risk management specifics of the banking credit organizations, functioning as Central counterparties in the financial market, in the context of the pending issues of their supervisory regulation. The main attention is devoted to the description of a specific CCP risk, its practical management as well as of the problems of the regulatory risk assessment adequacy that is based on current calculation methodology for banking standards. Based on deep analyses and research the author formulates detailed proposals on how to improve the quality of the CCP regulatory risk assessment. As a follow-up he presents an example of the reduction assessment of CCP capital requirements for credit risk coverage based on the methodology he suggested for banking standards calculations should the Bank of Russia make the changes in the one that is being applied now.

Keywords: financial market, clearing, central counterparty, risk management system, collateral, supervisory regulation of banks, bank operating standards, bank capital requirements for credit risk coverage

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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