15 January 2019
On 14 January 2019, the Basel Committee on Banking Supervision published its Minimum Capital Requirements for Market Risk document which replaces an earlier version of the standard as published in January 2016.
The Basel Committee halved the amount of extra capital banks need to set aside on average for exposures to financial market risk. Under the revised version, from January 2022, the capital that banks reserve for market risk will be roughly 22 percent higher than currently. The previous proposal would have resulted in a weighted average increase of about 40 percent, the global regulator said. However, some banks have larger trading books than the average and because of that, they will be hit harder.
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