Effective CVA a Necessity for Banks

Since the start of the financial crisis, extreme market turbulence and increased regulatory scrutiny have brought counterparty credit risk management to the top of the banking agenda. The collapse of Lehman Brothers has led to deterioration in confidence that financial institutions are capable of fulfilling their obligations to their counterparties. The continuing troubles in the Eurozone, combined with the widespread downgrading of sovereign debt, have resulted in a loss of faith in the