The Fundamental Review of the Trading Book (FRTB), is a set of proposals by the Basel Committee on Banking Supervision for a new market risk-related capital requirement for banks. [1] [2]

Oct 31, 2013 · The Basel Committee on Banking Supervision has today issued a second consultative paper on the fundamental review of capital requirements for the trading book. The paper comprises a detailed set of proposals for a comprehensive revision of the …

The new regulations within the framework of the Fundamental Review of the Trading Book (FRTB) include a stricter separation of positions between the trading and banking book, the introduction of a new standardised approach for market price risks as well as revised regulations on the use of internal models.

The Fundamental Review of the Trading Book (FRTB) is a comprehensive suite of capital rules developed by the Basel Committee on Banking Supervision (BCBS) as part of Basel III, intended to be applied to banks’ wholesale trading activities.

Fundamental Review of the Trading Book (FRTB) The Fundamental Review of the Trading Book is an international standard that sets out rules governing capital banks must hold against market risk exposures.

Feb 26, 2025 · The Fundamental Review of the Trading Book (FRTB) is a set of market risk capital rules designed to replace a series of patches introduced after the financial crisis. It seeks to better-capture tail risk, to redraw the boundary between banking and trading books, and to raise the bar for internal models.

Mar 17, 2022 · First introduced in the aftermath of the 2008 global financial crisis, the FRTB is a global set of rules specifying the minimum regulatory capital requirements that apply to banks’ wholesale...

The FRTB (Fundamental Review of the Trading Book) is the new Basel framework for Market Risk. The regulation seeks to standardise capital treatment to more accurately reflect the level of risk a trading desk holds and to introduce a more rigorous approach for internal models.

The Fundamental Review of the Trading Book (FRTB) is a new Basel committee framework for the next generation market risk regulatory capital rules. It is inspired by the undercapitalisation of trading book exposures witnessed during the financial crisis.

The FRTB addresses material weaknesses of the current market risk framework exposed by the financial crisis … Fig. 2 The fundamental review of the trading book (FRTB): An Overview