Basel Committee revamps approach to credit risk models

bis-centralbahnplatz-tower-2
The BIS tower in Basel

The Basel Committee on Banking Supervision has published consultation documents on changes to its standardised approaches to modelling credit risk, and proposals for a "capital floor" that seek to limit banks' internal risk assessments.

The standardised approaches to modelling credit risk are targeted at smaller banks that may be less sophisticated and less likely to benefit from the complexities of the internal ratings-based (IRB) approach employed by the largest global banks.

However, the curr

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking 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: