Across Asia, wide discrepancies remain in how jurisdictions
are dealing with Basel III rules including the Fundamental
Review of the Trading Book (FRTB).
Some have implemented the global rules to a high standard,
while others are still not Basel-compliant, explained
panellists at the International Swaps and Derivatives
Association (Isda) AGM in Hong Kong. Differences in how
regulators approach the FRTB – also known as Basel III
minimum capital requirements for market risk – are
creating uncertainty for banks.
The Basel Committee on Banking Supervision (BCBS) issued its
final version of the FRTB on January 14 2019. The proposed
framework means that banks need to overhaul their internal
systems and processes, particularly in the...