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Category: Risk Management

Risk Management Single Counterparty Credit Limit – SCCL

Risk Management Single Counterparty Credit Limit – SCCL

What is SCCL ?  SCCL stands for Single Counterparty Credit Limit It is a regulation initiated by the FED in the US ( US Regulator ) The purpose of this regulation is to prevent excessive credit exposures of large banking organizations to a single counterparty SCCL requires daily reporting, breaches need to be escalated to senior management ,  and requires real time limit management and utilization numbers. Fed reporting for SCCL is done using a Fed template Good Reference Material…

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What is Market Risk For A Bank ?

What is Market Risk For A Bank ?

Market Risk – is the risk that the value of your portfolio decreases based on market factors such as interest rate, equity , fx and commodity  etc. Detailed explanation provided here . Value At Risk ( VAR ) – is a measurement of Market Risk . VAR can be at the firm level or at a portfolio level. VAR – is the probability that you may lose a set % of money over a given time period.  You can read…

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