Singapore’s banks eye internal models for FX desks

New market risk regime dangles capital savings for own-models approach

Singapore

Singapore’s largest lenders are looking at using their own models to calculate capital for foreign exchange trading desks, after recent changes to market risk rules alleviated concerns among Asia’s banks over the uncertain capital impact of the new regime.

However, adoption of the internal models approach, or IMA, will not be straightforward, banks warn.

“We are going for IMA,” says Chew Chee Keong, UOB’s managing director for market risk. “We can save capital if we go with IMA for our foreign

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.fxweek.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: