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“The idea, in Europe and beyond, is to limit how far banks can adapt their spreadsheets to make their assets look less risky.” They should be required to publi
by osullivj 11y ago
“The idea, in Europe and beyond, is to limit how far banks can adapt their spreadsheets to make their assets look less risky.”
They should be required to publish live spreadsheets on their websites showing their RWAs with daily marks. SpreadServe [1] would be perfect for this job.
[1] http://spreadserve.com http://spreadserve.com
- nikatwork 11y agoThe data is not that readily available. Most Banking reporting is very far from realtime, it's "eventually consistent". Not because the Banks are (necessarily) hiding anything but due to the complexity of the systems. Regulators in first world countries already require accurate and timely reporting. It's really not as simple as just publishing a data feed. That's why things like Basel II(+) exist.
- tekp2 11y agoThe group aggregated RWA calcs for a global tier 1 bank run substantially in arrears - perhaps as much as 2 months, and IIRC are submitted to the regulators quarterly. The author is also using the word "spreadsheet" as shorthand to mean "the entire modelling infrastructure". For the trading book, this can be non-trivial.
- deleted 11y ago[deleted]
- yellowstuff 11y ago"Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires that information about the backing assets – loans – not be revealed, so that bank money does not fluctuate in value, reducing the efficiency of trade." -Banks As Secret Keepers: https://www.aeaweb.org/aea/2015conference/program/retrieve.php?pdfid=325 https://www.aeaweb.org/aea/2015conference/program/retrieve.p... There's a recent but very influential paper that shows that banks need to keep their assets secret to function well.