Trading book

From ACT Wiki
Revision as of 08:43, 24 June 2022 by imported>Doug Williamson (Mend link.)
Jump to navigationJump to search

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.


See also