The A-IRB approach must be changed, says FDIC study

“We believe that during most of a typical economic cycle, risk-based risk requirements for Basel II banks would be far below the levels for PCA. Consequently, the US regulators will have to choose between ignoring the output of Basel II’s formulas or significantly weakening the current PCA framework,” the FDIC said in a study released on December 8.

In the study, Estimating the Impact of Basel II’s Internal-Ratings Based Approach (A-IRB) in the US, the FDIC said contrary to descriptions of Basel

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here