Basel III portends A-IRB retreat

A smaller share of banks’ credit risk capital will be calculated using their own internal models and data inputs once Basel III rules come into force.

‘Group 1’ banks – internationally active firms with more than €3 billion in Tier 1 capital – are expected to produce just 29.4% of their credit risk-weighted assets (RWAs) using the advanced internal ratings-based approach (A-IRB) once the new framework takes effect, down from 41.1% currently, according to a monitoring report published by the

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