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The Basel Committee on Banking Supervision has issued the revised minimum capital requirements for market risk as agreed by its oversight body - the Group of Governors and Heads of Supervision (GHOS). The revised market risk framework is a key component of the Basel Committee's overall efforts to reform global regulatory standards in response to the global financial crisis.
The 2007-08 period of severe market stress exposed weaknesses in the framework for capitalising risks from trading activities. In 2009, the Committee introduced a set of revisions to the Basel II market risk framework to address the most pressing deficiencies. A fundamental review of the trading book was also initiated to tackle a number of structural flaws in the framework that were not addressed...
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