Trading book: Difference between revisions
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imported>Doug Williamson (Create the page. Source: BIS D352.) |
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Revision as of 16:28, 14 August 2016
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.