Irish ‘”bad bank” plan could force bigger loan losses; Deutsche Bank chief warns on narrow statistical systems to measure risk; Swedish model as template?
Mar 20th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The launch of an Irish '"bad bank" to quarantine toxic debts of the banks could require loan write-offs which match or are more severe than the banks’ worst-case scenarios under proposals being devised for the Government. Meanwhile, Dr. Josef Ackermann, chief executive of Deutsche Bank, said on Thursday, that banks must stop relying on narrow statistical systems to measure risk and regulators must adopt a “dynamic approach” in setting capital limits to force banks to build bigger buffers during good times. The Swedish rescue model may not be all it's cracked up to be, according to an analysis.