FRTB puts data demands on banks

Of all the new incoming regulations, few will have a greater impact on financial institution’s trading business than Fundamental Review of the Trading Book (FRTB).The new FRTB requirements from Basel Committee on Banking Supervision (BCBS) pertain to capital requirements for banks.

In fact this is a critical update to the current Basel 2.5 framework, which introduces stricter rules for the treatment of market risk across national jurisdictions and addresses some of the weaknesses of the current framework. In practice it could result in higher capital requirements to protect against their trading book positions.