Regulatory Alerts2008-01-01 | 24000Added · Updated
Application of Market Risk Capital Charges Instruction Manual
Licensed financial institutions in Trinidad and Tobago must apply market risk capital charges effective January 1, 2008, in accordance with the Basel 1 Market Risk Amendment. Foreign exchange risk requirements apply to all institutions, while interest rate and equity risk requirements apply only to those where marked-to-market securities and derivatives exceed 10% of total assets. The Central Bank mandates the use of the Standardized Approach, requiring institutions to calculate specific and general market risk charges for interest rates, equities, commodities, and foreign exchange, and to adjust their capital adequacy ratio to ensure total risk-weighted assets meet an 8% minimum capital requirement.
Topics
capital
fx
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