A more cumbersome process for obtaining internal model approval under the Fundamental review of the trading book (FRTB) could lead to a logjam, warn banks and regulatory specialists, as multiple firms seek approval for myriad trading desks at the same time.
“The increasing burden on the regulatory process is going to be significant,” says one European bank source with knowledge of the matter. “Basel 2.5 and Basel III application processes are pretty weighty tomes that are compiled by banks in
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