Regional banks cheer tweaks to FRTB standardised approach

Planned softening of SBA makes it more appealing, but most banks still expect to adopt IMA

Photo of sugar bowls
Regional banks intend to pick and choose IMA for certain desks

Proposed changes to the Fundamental Review of the Trading Book have made the standardised approach look more palatable to some large regional banks, but many firms still expect at least some of their trading desks to model their market risk capital requirements.

Under FRTB, banks will be able to choose to use their own models to calculate market risk capital requirements, or adopt a regulator-set sensitivities-based approach (SBA). Some second-tier banks with smaller, more regionally focused ma

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