Trading book

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

• Arbitrage
• Banking book
• Capital adequacy
• Hedging
• Interest rate risk
• IRRBB
• Market risk
• MCRMR