Asia corporates unfairly ‘penalised’ by CVA capital charge

businessman-rope-tie

Europe's decision to unilaterally provide a credit valuation adjustment (CVA) exemption for banks in derivatives trades with corporates should be applied in Asia, otherwise firms in the region will be "penalised" with uncompetitive pricing that could spill over into problems with the real economy, according to one senior Asia-based banker.

Hong Kong, Singapore and Australia implemented the CVA aspect of the Basel III accord on January 1 this year meaning that banks regulated in those localities

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 info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

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

.