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Editors' choice
Final Volcker rule spurs rethink on FRTB trading desks
Regulators encourage structural alignment between the two rules, but hurdles remain
Big Figure
Carry that weight
Revisions to the Basel Committee’s market risk framework will increase European banks’ market risk-weighted assets (RWAs) by 105% on average, a study by the European Banking Authority shows. The 2019 iteration of the Fundamental Review of the Trading Book standard, due to come into force in 2022, will hit those banks using the internal models approach hardest, pushing their market RWAs up 108% on average relative to current levels. Those planning to exclusively use the updated regulator-set standardised approach will see a smaller 76% increase on average.
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Zombie Libor, climate risk flaw, Mifid’s closed door
The week on Risk.net, December 7–13
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