FRTB could hit syndicated loans, banks fear
Accounting classification would lump assets into regulatory trading book
Syndicated loans may fall foul of new accounting classifications that bucket them in dealers’ trading books – causing them to swallow punitive market risk capital charges for assets they argue belong in banking books.
Interplay between the incoming International Financial Reporting Standard 9’s (IFRS 9) accounting standards and the market risk capital rules of the Basel Committee on Banking Supervision’s Fundamental Review of the Trading Book (FRTB) has sown confusion among market participants
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