Regulation on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange risk or commodity risk and the treatment of those positions for the purposes of the regulatory back-testing requirements and the profit and loss attribution requirement under the alternative internal model approach

This procedure updates rules on how banks calculate their capital requirements for market risks, specifically for foreign exchange and commodity risks in non-trading book positions. It ensures banks hold adequate capital to absorb potential losses.

It affects banks and financial institutions by specifying the calculation methods for own funds. This impacts their risk management and regulatory reporting under the internal model approach.