Basel rates split heralds soft landing, banks hope

Regulators have spent two years exploring a possible Pillar I charge for interest rate risk in the banking book, but are said to be more divided now than when they started. Industry sources are hoping it results in a cautious first consultation paper.

Divided by rules: timetable for IRRBB project has started to slip

Ask someone on the street to define a bank, and they will probably tell you it is a business that accepts deposits and makes loans. So it might seem strange these trusty, common-or-garden bits of banking are giving regulators as big a headache as they have had in the post-crisis years.

While trading book instruments are often seen as riskier, contractual maturities and market-driven prices make them easier to model. Measuring the risk of banking book instruments, in contrast, involves a host of