Do not delay the go-live of FRTB any further

16 december 2025

Do not delay the application of the Fundamental Review of the Trading Book any further. That is the main message of the Dutch Banking Association (NVB) in its response to the consultation from the European Commission on the ‘Application of the Market Risk Prudential Framework’. FRTB introduces three approaches for the calculation of risk weighted assets for market risk: the Simplified Standardised Approach (SSA), the Standardised Approach (SA), and the Internal Model Approach (IMA). As the rules for using internal models for market risk are very complex and costly, many banks choose to use the standardised approaches for market risk. Possible future adjustments to the internal model approach should not withhold banks for swiftly implementing standardised approaches.