Basel regulators may scrap 90% IRB floor for credit risk
Global banking regulators will soon abandon their controversial 90%, two-year floor on the benefit banks could reap by moving to the advanced internal ratings based (IRB) technique for calculating capital charges against credit risk under the Basel II capital accord, a US bank regulator said in early October.
The banking industry has criticised the 90% floor in comments on the complex, risk-sensitive Basel II accord proposed by the Basel Committee on Banking Supervision, the body that in effect regulates international banking
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