Today I had business meeting in Berlin. Travelling to Berlin by plane is very easy and convenient for me, since we live near the Frankfurt International Airport.
Coordinator for this meeting was the federal association of private loan and building associations (specialised house = finance banks; the so called “Bausparkassen”). On our agenda we had risk management issues and the new regulatory requirements that arise from the Basel II Capital accord; especially those which are related to interest rates. One key issue was to compare the different approaches from our companies to calculate and to manage interest rate related risks. Within our commission we decided to set up a small project to develop a specification. The aim of this specification is to describe how “Bausparkassen” might calculate these risks. Receiver of this specification will be the German Regulator for the Finance Industry. Actually I am short of time this month, but this issue is important; hence I gonna support this project.