White Paper

Forming FRTB action plans: Tactical vs. Transformational

Company: IBM Business Analytics

IBM Business Analytics  case study

Category: Regulation

Published: 19 May 2016

Format:

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Overview

The Fundamental Review of Trading Book (FRTB) defines new minimum capital requirements and behaviours for market risk management. The controversial reforms, released by the Bank for International Settlements (BIS), were finalized in January of this year.

The formal phase of consultations between banks and regulators on FRTB has ended, and the biggest change to market risk capital requirements in over a decade has been finalized. Now banks are in a race against the regulatory deadline, and must choose the most efficient path to overhaul their risk management infrastructure and adapt their business strategies.

This report, examines what banks are doing to achieve FRTB compliance and shares examples of best practice from banks who are leading the way. It looks at the operational impacts of implementing new measures and new technologies, and the expected impact on regulatory capital requirements.

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