Risk.net
Banks urged to take action as FRTB implementation nears
09 Jun 2021
While the Fundamental Review of the Trading Book (FRTB) has been a long time in the making, and implementation guidance remains sparse in some jurisdictions, banks cannot afford further delays in deciding their market risk model approach and putting the necessary infrastructure and data management measures in place
With implementation less than two years away, it is imperative jurisdictions finalise local interpretation of FRTB rules, and banks take action to address the many remaining challenges to ensure full compliance.
Europe is the most advanced region in its preparation for FRTB implementation, including interpretation of the rules and the provision of guidelines to banks. But, outside of Europe – especially in jurisdictions such as the US – there have been few official statements on rule interpretation.