In January 2016, the Basel Committee on Banking Supervision published the standard Minimum capital requirements for market risk (access the BIS full text here). With the goal of promoting a consistent global implementation of this standard, which is to become the basis for Pillar 1 capital requirements in 2019, the Basel Committee periodically reviews frequently asked questions (FAQs) and publishes answers along with any fundamental and technical elaboration of the standards text, including guidance that may be necessary for the wider audience. This is highly relevant for anyone working closely with capital adequacy and regulation, as well as business managers or market risk managers.
Since the publication, the Committee has received a number of questions on the published standards text. The document below includes the the first set of questions and answers that have been received by the Basel Committee.
Click on the image below to access the full text (pdf, opens in a new window).