Content area
Full text
Asian bankers criticized draft guidelines on the capital adequacy treatment of credit derivatives in the banking and trading books released early this month by the Australian Prudential Regulation Authority for hardly deviating from an April policy discussion paper. "APRA appears not to have taken seriously the comments of the International Swaps and Derivatives Association. The treatment of baskets and offsets is still restrictive," said a U.S. banker in Hong Kong. ISDA had criticized APRA's stance on off-sets and first-to-default baskets in the trading book (DW, 8/2).