Internal model use may decline under FRTB, banks say

"The jury is still out on whether internal models are worth the effort" – HSBC's Jenkins

FRTB means internal models may not be worth the effort, according to banks

Bank risk managers have warned that the use of internal models for calculating regulatory capital is likely to decline as a result of the Basel Committee on Banking Supervision’s Fundamental review of the trading book (FRTB).

"For me personally – and the organisation may feel slightly differently about this, or not – the jury is still out on whether internal models are worth the effort," said Ed Jenkins, global head of wholesale credit and risk at HSBC, speaking on a panel discussion at the

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