A charge reflecting the risk of the decline in the liquidity or credit risk quality of the trading portfolio is the general market risk capital requirement charge in the BIS framework.

Question

Quizplus · Accepted Answer

The general market risk capital requirement charge in the BIS (Bank for International Settlements) framework is designed to cover potential losses from adverse movements in market prices, not specifically the decline in liquidity or credit risk quality of the trading portfolio.

A Charge Reflecting the Risk of the Decline in the Liquidity