On December 13, 2013 the Basel Committee issued its final standards for calculating capital requirements for banks’ investments in pooled funds. The regulators are taking a hard line on fund investments, which will be subject to punitive risk-weights unless banks can demonstrate meaningful look-through transparency into the underlying assets.
The approach outlined in December applies to the banking book. However, the Basel Committee is expected to take a consistent approach to fund positions in
The week on Risk.net, October 6-12, 2017Receive this by email