European regulator sets out compliance standards for internal risk models

The European Banking Authority (EBA) has launched a public consultation on its draft Regulatory Technical Standards (RTS) on the assessment methodology under which competent authorities verify institutions’ compliance with the requirements applicable to their internal risk models under the Fundamental Review of the Trading Book (FRTB) rules. ‘One of the prerequisites for an institution to use the new internal model approach (IMA) for calculating its own funds requirements for market risk is the