On July 24, ISDA wrote to the Basel Committee on Banking Supervision (BCBS) to request guidance on how the proposed Risk Mitigation Accounting (RMA) model under International Financial Reporting Standard (IFRS) 9/IFRS 7 should be treated for prudential regulatory capital purposes.
ISDA is seeking confirmation that the risk mitigation adjustment created by the risk mitigation accounting (RMA) model should not be treated as a new standalone asset or liability attracting additional capital requirements, risk-weighted assets, leverage ratio, liquidity coverage ratio or net stable funding ratio impacts. The letter argues that the adjustment is an accounting mechanism broadly consistent with existing hedge accounting under International Accounting Standard 39 and does not create additional economic or prudential risk.
The letter also encourages the BCBS and the Bank for International Settlements to consider issuing guidance, potentially in the form of frequently asked questions once the RMA model is final, so that banks and national regulators have clarity on the regulatory capital treatment.
Documents (1) for ISDA Requests Clarification from BCBS on RMA Models under IFRS 9/IFRS 7
Latest
ISDA In Review – August 2026
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in August 2026.
Remove Bureaucracy from Cross-margin Approvals
Cross-margining programs play a critical role in financial markets. By ensuring margin requirements more closely reflect the actual risk of a portfolio of products, they reduce liquidity strain and improve market efficiency, both of which will become even more important...
Joint Response on CCP Resolution
On September 7, ISDA and FIA responded to a Bank of England (BOE) discussion paper on central counterparty (CCP) resolution. The associations support greater clarity on valuation capabilities prior to a crisis scenario and the boundary between recovery and resolution,...
Expanding Legal Agreement Coverage in the CDM
This paper examines the recent extension of the Common Domain Model (CDM)1 to represent two of the most significant, and previously undeveloped, areas of its legal agreement model: umbrella agreements and contract amendments. Umbrella agreements are widely used to document...