Banks across the Asia-Pacific region are bracing for a rocky implementation of Fundamental Review of the Trading Book (FRTB) rules, as disparate regulatory timelines, diverging local standards and operational complexities deepen the challenging task of compliance.
The FRTB, a key component of the final Basel III rulebook, represents a sweeping revamp of the way that banks determine and hold regulatory capital for market risk. The new standards are designed to tackle some of the deficiencies in the Basel 2.5 framework, devised in the immediate aftermath of the global financial crisis.
