The International Swaps and Derivatives Association has called for further adjustments to Basel III market risk capital requirements and a pragmatic implementation timetable. It said the latest US Basel III endgame proposal improves risk sensitivity, but vital changes remain before finalization, while banks need sufficient time to adopt internal models accurately and consistently. As the European Banking Authority prepares to expand its market risk benchmarking exercise in 2027, ISDA will make its Capital Models Benchmarking service available to newly in-scope banks. With the US, EU and UK advancing their Basel III frameworks, ISDA also emphasized international consistency and the need to balance risk sensitivity, simplicity and banking system stability.
International Swaps and Derivatives Association urges further Basel III market risk calibration and pragmatic implementation
The International Swaps and Derivatives Association called for further calibration of Basel III market risk rules and sufficient implementation time for internal models. It will offer its capital models benchmarking service to banks newly covered by the European Banking Authority’s expanded 2027 exercise, while urging greater consistency across the US, EU and UK.