Regulatory Alerts2015-02-09
Basel Committee on Banking Supervision (BCBS) Consultative Document on Fundamental Review of the Trading Book: Outstanding Issues
The Saudi Arabian Monetary Agency (SAMA) forwarded the Basel Committee on Banking Supervision's (BCBS) third consultative paper on outstanding issues related to the fundamental review of trading book capital requirements, which aims to strengthen capital standards for market risk. This paper introduces new proposals for internal risk transfers between banking and trading books, a sensitivities-based methodology in the revised standardised approach, and a simpler method for incorporating liquidity horizons in the internal models approach. SAMA requires all banks to review the BCBS document, accessible from the BIS website, and submit their comments to SAMA by February 17, 2015.
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