Banking Book vs Trading Book | Key Differences Explained

Banking Book vs Trading Book Key Differences Explained
Banking Book and Trading Book are core portfolios in banks. In this video, we explain their purpose, risks (credit risk, interest rate risk, market risk, liquidity risk), and Basel Committee regulations with clear examples.
You’ll learn:
• The purpose and function of each book
• The distinct risks they carry
• Real-world examples of assets in each category
• How regulations apply differently to each book
Whether you’re a finance student, banking professional, or curious about risk management, this guide will help you understand why keeping these books separate is essential for regulatory compliance.
#BankingBook #TradingBook #RiskManagement #BaselCommittee #FinanceEducation #MarketRisk #InterestRateRisk #bankingquestion

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CHAPTERS
00:00 – Introduction
00:48 – Banking Portfolios
01:13 – Contents of Banking Book and Trading Book
01:37 – Banking Book vs. Trading Book
02:37 – Example: Banking and Trading Book
03:59 – Conclusion
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