A Regulator's View on Managing Other Risks in Banking

This paper describes the changing pattern of risk in the banking sector, along with the response of both regulators and supervisors to the problems posed by this change. A major issue is the emergence of ‘other risks’, a category of risk that is not currently adequately catered for under current international banking supervision agreements. New proposals are outlined to deal with such risks, building on the strengths of existing agreements and taking into account a number of barriers to the adoption of this new regulatory framework. We conclude that, whilst these proposals are themselves rooted in change, they will result in a significant shift in terminology and behaviours.