An ambitious agenda - what the PRA’s business plan means for banks - S3E9
Risk & Regulation Rundown
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The Impact of Basel 3.1 on Bank Strategy and Business Models
Basel 3.1 was designed as a way of addressing the variability in risk weights that we saw coming out of the banks internal models. The outcome of the package is something pretty fundamental actually an overhaul of credit risk framework operational risk framework market risk framework through the fundamental review of the trading book and then perhaps most controversially the introduction of an output floor which puts a floor on the risk weights that internal models can produce as a percentage of the standardised approach. So we're looking at reasonably significant increases in capital requirements for a number of different banks with different business models.
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