The consultative papers Revisions to the Basel II market risk framework and Guidelines for computing capital for incremental risk in the trading book set out the Committee's proposed enhancements to the regulatory capital treatment for trading book exposures. Collectively, these are referred to as the "trading book proposals".
The Committee therefore proposes to require banks to calculate a stressed VaR taking into account a one-year observation period relating to significant losses, which would be in addition to the VaR based on the most recent one-year observation period. The additional stressed VaR requirement will help reduce the procyclicality of the minimum capital requirements for market risk.
http://www.bis.org/publ/bcbs148.pdf?noframes=1
http://www.bis.org/publ/bcbs149.pdf?noframes=1
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