Trading book: Difference between revisions
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imported>Doug Williamson (Expand for new Fundamental Review of the Trading Book page.) |
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* [[Banking book]] | * [[Banking book]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Fundamental Review of the Trading Book]] | |||
* [[Hedging]] | * [[Hedging]] | ||
* [[Interest rate risk]] | * [[Interest rate risk]] | ||
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* [[MCRMR]] | * [[MCRMR]] | ||
* [[MRBB]] | * [[MRBB]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Revision as of 21:37, 6 October 2018
Bank supervision - capital adequacy.
For capital adequacy calculation purposes, a bank's trading book includes any instruments which are held for any one or more of:
- Short term resale.
- Profiting from short term price movements.
- Locking in arbitrage profits.
- Hedging risks arising from any of these activities.
The trading book is distinguished from the banking book.
The banking book includes all instruments which are not in the trading book.
