Basel DVA capital deduction could cost banks billions


Banks could see billions of dollars removed from their stock of capital if regulators go through with a plan to exclude debit value adjustment (DVA) on derivatives portfolios from equity capital calculations. The proposal, published on December 16 by the Basel Committee on Banking Supervision, would also result in conflict between accounting rules and prudential standards.

"A typical dealer's total DVA could easily be around $2 billion – so excluding this from capital would be very significant

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: