Banks ‘fail’ risk test

Banks are struggling to accurately judge counterparty credit risk and maintain up-to-date information, according to new research

Only one bank in 12 is able to measure the credit risk of those with which it trades, according to research published this week by consulting firm Lepus.

Being able to calculate counterparty credit risk is central to sound risk management but Lepus found that only 8% of the 39 bank respondents to a web-based survey could make the judgement.

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