Basel Committee’s revised risk capital requirements

The Basel Committee on Banking Supervision reports that it has issued the revised minimum capital requirements for market risk as agreed by the Group of Governors and Heads of Supervision (GHOS).

The purpose of the revised market risk framework is to ensure that the standardised and internal model approaches to market risk deliver credible capital outcomes and promote consistent implementation of the standards across jurisdictions. The final standard incorporates changes that have been made following two consultative documents published in October 2013 and December 2014 and several quantitative impact studies.

The revised market risk framework comes into effect on January 1 2019. Over the implementation period, the Committee says it will continue to monitor the capital impact of the revised standard in order to ensure consistency in the overall calibration of the Basel capital framework.