WASHINGTON: Large banks that have elaborate risk-measurement systems stand to be the biggest winners in the United States from an international bank safety accord reached on Tuesday, bank industry analysts said.
“It can serve as an advantage from a capital point of view for your larger, mostly money centre and super-regional banks that have more sophisticated risk management and modelling systems, and put at a capital disadvantage your more mid-cap and smaller banks that will rely on something closer to the current system,” said Kevin Fitzsimmons, a bank analyst with Sandler O'Neill.