Market Risk Standard (MRS)

Market Risk Standard (MRS) is a regulation that sets the minimum requirements banks and financial institutions must hold to protect against potential losses from fluctuations in market prices, such as interest rates, stock prices, or currency values. It ensures institutions are financially prepared to absorb adverse movements in the markets, reducing the risk of insolvency. Essentially, MRS provides a standardized framework to evaluate and manage the risks arising from market volatility, promoting stability and confidence in the financial system.