Basel plans modelling curb for billions in credit RWAs

Proposals clamp down on IRB approach that is “usually gamed pretty easily”, says FDIC’s Hoenig

Basel Committee HQ, Switzerland

International regulators have proposed a series of constraints on the way banks model capital requirements for loan portfolios and other credit risk exposures - part of an ongoing drive to limit the use of models and produce more comparable risk-weighted asset (RWA) numbers between banks.

The Basel proposals, which were issued today (March 24), would remove the option to use internal ratings-based (IRB) approaches for exposures to banks and other financial institutions, as well as to the largest

To continue reading...

You need to sign in to use this feature. If you don’t have a 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 indvidual account here: