Basel Committee releases results of trading-book study

10/22/2009 | Structured Credit Investor (U.K.)

The Basel Committee has assessed the effects of amendments adopted in July to rules covering trading-book capital. "Increasingly complex trading-book exposures were a major driver of losses in the recent crisis," said Nout Wellink, chairman of the Basel Committee and president of the Netherlands Bank. "The reforms will ensure that these exposures are backed by a sufficient capital cushion, help address pro-cyclicality of trading-book capital requirements and limit arbitrage opportunities between the trading book and the banking book."

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