FRTB could hit syndicated loans, banks fear

Accounting classification would lump assets into regulatory trading book

added costs
Adding up: new accounting classifications could hit syndicated loans

Syndicated loans may fall foul of new accounting classifications that bucket them in dealers’ trading books – causing them to swallow punitive market risk capital charges for assets they argue belong in banking books.

Interplay between the incoming International Financial Reporting Standard 9’s (IFRS 9) accounting standards and the market risk capital rules of the Basel Committee on Banking Supervision’s Fundamental Review of the Trading Book (FRTB) has sown confusion among market participants.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: