Traders in the front office have considered market and credit risk jointly for a long time, not only regarding counterparty risk but also for the purpose of capital arbitrage, for instance. By contrast, ten years ago this was hardly the case for the banking book, for which credit risk was mostly the only risk type considered.
A noteworthy departure from the current framework is that individual banks will be able to choose between two different principles for compiling the capital required to cover credit risks. Larger banks may base their capital requirement on an internal risk model, while others may opt for a simpler standard method closer to the current principles.