Credit Conversion Factor (CCF)
Bank of England Breaks with Basel, keeps 20% CCF for Trade Instruments
The Bank of England reversed its plan to raise trade finance capital requirements from 20% to 50%, aligning with the EU approach but raising insurance-related requirements.
Achieving True Participation in Unfunded Risk: Standby Letters of Credit
Exploring the steps and considerations for banks to effectively navigate the complexities of true sale unfunded risk participation, identifying product and regulatory nuances, and understanding practical applications through use case scenarios.
BAFT Responds to US Agencies’ "Basel Endgame" Capital Rule Proposal
BAFT responds to US regulatory proposal "Basel Endgame" on capital requirements, emphasizing fair treatment for trade finance.
2023 Americas LC Law Summit: Executive Summary
For the 24th consecutive year, the Institute of International Banking Law & Practice conducted its one-day Americas Letter of Credit Law Summit.
EU Maintains Capital Requirements for Performance-Related Trade Products
this has links to Feb 2023 DCW item on EU capital requirements
EU Banks, Corporates Cautiously Optimistic While Awaiting Decision on Treatment of Trade Finance Products
EU Parliament may keep trade finance instruments' CCF at 20% instead of 50%. Trade specialists urge caution; Cazenove of Societe Generale warns against potential risks to corporates and economies.
Standby LCs Are Good Business – If You Know What You Are Doing!
Proposed EU Capital Requirements Regulation changes may raise credit conversion factor for standby letters of credit. Limited data suggests low default rates. Banks issue standbys for fees, and despite credit risk, many expire unused.
Banks Upbeat EU Could Keep 20% CCF for Trade Finance Products
According to published reports, the EU appears to be on a path for abandoning a planned tenet of Basel reforms
