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The Bank of International Settlement document (BIS 2004) opened the door to the possibility of using, subject to validation by the individual national supervisory authorities, systems of internal rating of credit risk developed by the banks when they satisfy certain criteria. Specifically, the...
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smoothing and loan loss provisioning. As the revised rules exert greater regulatory pressure on corporate than retail banking … reports reveals greater (less) income smoothing in the corporate banking segments of low-capital (high-capital) banks during … effects for retail banking. Although we document an initially negative market reaction to the regulatory announcements, that …
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Although progress has been made in strengthening the Swiss economy, systemic risks posed by large banks as well as revisions to the macroprudential framework are still in train. The authorities welcomed the too-big-to-fail (TBTF) legislation and intervention of the Swiss National Bank (SNB) on...
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