Banks fear FRTB internal model approval gridlock

UK regulator said to have concerns about the high volume of simultaneous approval requests

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Green light: banks must gain regulatory go-ahead under the new desk-level model-approval process

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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