Trading book

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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 banking book includes all instruments which are not in the trading book.


See also

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