US Banking Agencies Issue Final Rule on Capital Requirements to Address Market Risk

June 27, 2012
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation recently approved a joint final rule regarding the amount of capital required under risk-based capital rules to cover market risk. This update examines the new rule, which is intended to revise banking organizations’ internal modeling practices to more rigorously and reliably analyze and calculate their exposure to market risk in their trading positions.