Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
All three Japanese megabanks caught in the country’s early roll-out of Basel III have shunned the internal models approach (IMA) for calculating market risk capital under new trading book rules, citing high costs, complexity and a lack of data.
The mass abandonment of the IMA is creating concerns around behavioural changes – such as herding into crowded trades – that could result from most banks
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