Finance in Focus: How banks are getting to grips with the Fundamental Review of the Trading Book

Finance in Focus: How banks are getting to grips with the Fundamental Review of the Trading Book


Banks are scared stiff.” Toward the end of 2015, dramatic pronouncements dominated financial media discussions about the finalized Fundamental Review of the Trading Book (FRTB), an overhaul of Basel banking rules designed to address problems encountered as a result of the global financial crisis. However, many banks worry that the forthcoming rules will impose significant new capital requirements and necessitate investments in new IT systems while also incurring other operational costs. As senior bankers and even regulators complain that many key questions and issues remained outstanding, banks around the world have entered 2016 still uncertain about many parts of this overhaul of market risk capital rules. However, all agree that banks will be significantly affected.

This installment of the Finance in Focus podcast series features a discussion between senior market risk managers from three major international banks, together with an IBM risk specialist, all of whom offer insights into the FRTB while discussing best practices for financial institutions. Tune in to dive deep into this timely banking issue while getting answers to your burning questions:

  • How momentous an issue for banks is the FRTB?
  • What types of banks can expect to be among those most affected in the wake of the global financial crisis?
  • Will capital requirements for banks increase?
  • Which performance indicators can banks expect to provide insights into management of a trading business?
  • What technology challenges will be associated with these new rules?
  • How are banks addressing the data management and reporting challenges posed by the FRTB?

Join our discussion for a look at how trading book risk management can help banks grow while meeting the challenges posed by the FRTB.

This week’s host:

  • Duncan Wood, editor-in-chief, Risk.net

This week’s guests:

  • Katherine Wolicki, global risk analytics, HSBC
  • Phil Ohana, director, market risk, Societe Generale
  • John Mitchell, director, market risk management, Credit Suisse
  • James Zante, product manager, integrated market and credit, IBM Risk Analytics

To take part in the conversation about the FRTB and its implications for financial institutions, attend the IBM Smarter Risk Summit NYC, scheduled for 9 February 2016 at the New York Stock Exchange. At the summit, you’ll join industry leaders in discussing the implications of implementing the FRTB—both the challenges and the solutions. Register now to reserve your seat for this complimentary event, then check out the agenda for a sneak peek at its featured sessions, speakers and abstracts.