Basel Committee revamps approach to credit risk models

New standardised models seek to reduce reliance on external ratings

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

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 individual account

.