Trading book: Difference between revisions
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imported>Doug Williamson (Create the page. Source: BIS D352.) |
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== See also == | == See also == | ||
* [[Arbitrage]] | |||
* [[Banking book]] | * [[Banking book]] | ||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Hedging]] | |||
* [[Interest rate risk]] | * [[Interest rate risk]] | ||
* [[IRRBB]] | * [[IRRBB]] | ||
* [[Market risk]] | * [[Market risk]] | ||
* [[MCRMR]] | * [[MCRMR]] | ||
Revision as of 19:39, 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.
