Basel Committee revises framework for banks' equity investments in funds: The Basel Committee
has published a revised framework for the prudential treatment of banks' equity investments in funds.
The framework, which consists of three approaches (look through, investment mandate-based and fall
back 1,250% risk weight), is now adjusted to reflect the leverage of the fund. (Source: Capital
Basel Committee publishes second report on consistency of trading book RWAs: The Basel
Committee has published its second report on the regulatory consistency of RWAs in the trading book,
which concludes that internal models are behind most of the variation in trading book RWAs across
banks. This confirms the need for greater disclosure on RWAs, narrower modelling choices and
harmonisation of supervisory approval of internal models. Further measures to tackle this inconsistency
will be adopted through the ongoing fundamental review of the trading book and forthcoming
improvements to Pillar 3 disclosures. (Source: Second Report on Consistency of Trading Book