Barclays and HSBC opt for FRTB internal models
However, UK pair unlikely to chase approval in time for Basel III go-live in January 2026
Barclays and HSBC are building new risk models to meet revamped trading book rules, Risk.net has learned. The UK pair are the sixth and seventh banks identified by Risk.net to be persevering with the advanced approaches for calculating market risk capital, amid an industry-wide retreat in favour of a cheaper regulatory-set method.
The overhaul of market risk rules, dubbed the Fundamental Review of the Trading Book, is due to go live in the UK on January 1, 2026. However, the two banks are
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