By Henry Umney, CEO, ClusterSeven
The European Central Bank’s (ECB) Targeted Review of Internal Models (TRIM) is due to come into effect in 2019. TRIM is part of the ongoing programme of regulatory enhancements and forms part of the European Banking Authority’s (EBA) activities to enhance its visibility of the European financial services sector, and address key areas of systemic risk.
TRIM specifically targets those institutions that make use of Internal Models, rather than the Standardised Model, for calculating their risk weighted assets, and their regulatory capital under Basel III.
At banks, the vast majority of the effort to calculate their risk-weighted assets using Internal Models is via the use of powerful calculation engines, through corporate IT applications…
