Basel Committee Reiterates Foreign Exchange Settlement Risk Is For Banks To Manage
NEWS
Basel, Switzerland--Revised guidelines on foreign exchange settlement risk issued by the Basel Committee on Banking Supervision this month repeat an earlier message: it’s up to banks, rather than regulators, to manage this risk.
The committee says banks should manage FX settlement risk -- the risk that settlement of a currency trade should fail for any reason -- in the same way they should manage other credit risks of similar size and duration: by formal measurement and control overseen by active
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