The Basel Committee on Banking Supervision, an intergovernmental regulatory body, published its report on the regulatory consistency of risk-weighted assets for market risk, with the intent of explaining the potential variations in the assigned market risk-weightings for trading assets by different banks with significant trading operations.
The ratio of market risk-weighted assets to total trading assets, seen as an average risk weight, ranged from a low of 10 percent at BNP Paribas to 80 percent at UniCredit.
This analysis of risk-weighted assets in the trading book is part of Level 3 of the wider Regulatory Consistency Assessment Program (RCAP) initiated by the Committee in 2012. A similar analysis is currently under way for the banking book.
The program aims to ensure consistent implementation of the Basel framework, which will help strengthen the resilience of the global banking system, maintain market confidence in regulatory ratios and provide a level playing field for
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