Economic Capital is the amount of money a bank needs to handle tough market conditions. This study looks at how an international bank figures out the Economic Capital for its trading book. They focus on two main risks: market risk and credit risk. They found that Expected Shortfall is better than Value at Risk for predicting extreme losses in the market. They also looked at how to measure credit risk by analyzing the chances of borrowers not paying back their loans. The study compared different methods and found one that works well for the bank.