G-Sibs eye simpler market risk calculations in Hong Kong

HKMA may need to ease rules on NMRFs to incentivise use of internal models

Abacus

Global banks in Hong Kong are treading a fine line in seeking a simplified standardised approach to calculating market risk capital for their trading books – and avoiding the use of internal models because of limited potential cost savings for local subsidiaries.

But the Hong Kong Monetary Authority (HKMA) may not be aligned with their thinking – and Hong Kong’s small group of global systemically important banks (G-Sibs) might need to reconsider.

“Some of the G-Sibs are indicating that they

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: