Trading book: Difference between revisions
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imported>Doug Williamson (Mend link.) |
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* [[Hedging]] | * [[Hedging]] | ||
* [[Interest rate risk]] | * [[Interest rate risk]] | ||
* [[ | * [[Interest Rate Risk in the Banking Book]] (IRRBB) | ||
* [[Market risk]] | * [[Market risk]] | ||
* [[MCRMR]] | * [[MCRMR]] | ||
Revision as of 09:19, 24 June 2022
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.
