Mr. James Lam, Managing Consultant, Financial Risk Management

Mr. Nicolas Tollie, Japan Representative

Sia Partners KK

The financial crisis in 2008 exposed a number of weaknesses in the global financial system.  Many new regulations have been introduced to address these weaknesses and the Fundamental Review of Trading Book (FRTB) and Interest Rate Risk in the Banking Book (IRRBB) are major new parts of the regulatory infrastructure that are being finalized and published in 2016.

In the FRTB, the Basel Committee on Banking Supervision (BCBS) sets out the revised standards for minimum capital requirements for market risk.

And in the IRRBB,  BCBS sets out its expectations for banks in their identification, measurement, monitoring and control of the interest rate risk in their banking book; it also sets out an  approach to supervision.

FRTB is a complex framework and will have a substantial impact on the financial institutions’ (FIs) trading book. The IRRBB will likewise have a major impact on the banking book.   These regulations will change the way that FIs  in the future will carry out their business and manage their risks. They will  require FIs to set aside significantly larger amounts of capital and to commit significant amount of resources to meet the tight implementation timeline; this will be challenging to firms and its introduction raises a number of risks.    

Two experts from Sia Partners Tokyo office, will give an overview of the  key requirements of FRTB and IRRBB.  The event will also give a brief overview of other key regulatory changes that will affect FIs in Japan.