Basel III Endgame and other sequels

It sounds like the title of an action-staved Marvel movie. Yet “Basel III Endgame” is still managing to set pulses racing – at least among regulators and bank risk managers. Along with the final rule for the Fundamental Review of the Trading Book (FRTB), and other planned or proposed regulations – including multiple stress tests, reverse scenarios and measures like expected shortfall – it could have far-reaching consequences for the way banks insure themselves against future shocks, and the amount of capital they need to set aside. What will the impact be, and what are the pros and cons of this brave new regulatory world? It’s all in Alla’s latest column for the Global Association of Risk Professionals (GARP). You can read it here.