Fiscal Year 2024
Capacity Development Activities
Financial Supervision and Regulation (Jan 16-20)
METAC assisted the Bank Al Maghrib (BAM) in reviewing the requirements of Basel III Fundamental Review of the Trading Book (FRTB) and identifying the main gaps in BAM’s current market risk framework. The mission presented to BAM the major enhancements to the market risk framework provided by FRTB and how the European Union (EU) incorporated these new requirements in its regulatory framework and addressed certain implementation issues. The mission discussed the various simplified, standard, and advanced approaches of FRTB, outlined several specificities of the Moroccan banking system that would require more investigations to assess the implications of FRTB and recommended BAM to decide on the most appropriate approach. It also discussed the structure of the regulation and developed a roadmap for FRTB implementation.
