Basle Committee Removes Floor On 'Specific Risk' Capital Calculations
THE Basle Committee on Banking Supervision, part the Bank for International Settlements (BIS), has modified its regulations on risk-based capital adequacy calculation.
The rule change involves removing a minimum capital charge known as the "floor". The floor previously applied to banks' internal models of what the Committee calls "specific risk".
Specific risk is one component of capital adequacy
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