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
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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