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.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 individual account here: