Malaysian banks face 20% capital surcharge from Basel III internal model switch

Petronas Towers in Kuala Lumpur

Malaysian banks operating across several jurisdictions in South-east Asia are facing higher capital charges when shifting from a standardised to an internal-based model for credit risk at a group level, due to Basel III's sovereign ratings cap.

Under the standardised approach, banks use ratings provided by recognised external rating agencies to apply risk weights within the capital computation framework. However, for exposures to corporate counterparties, banks must use the higher risk weight of

To continue reading...

You must be signed in to use this feature.

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 indvidual account here: