UK banks face pressure on market-risk capital rules even as US, EU may delay

26 June 2018 6:17pm
UK banks must prepare for capital standards on market risk due in 2022, despite changes to come from global regulators and potential delays in other jurisdictions, a British supervisor said today.

Banks won’t be able to wait for the final version of the international standards, UK Prudential Regulation Authority technical adviser Jonathan Ward said at a conference* in Brussels today. ”Implementation starts now.”

The Basel Committee on Banking Supervision plans by the end of this year to finish a revamp of the capital regime for banks’ market activity, known as the Fundamental Review of the Trading Book (read more here). The FRTB should be implemented by the start of 2022, according to the Swiss-based body, which includes 28 jurisdictions covering most of the world’s financial centers.