Phase-in for the Removal of the Internal Ratings-Based Approach for Equity Exposures
No: 44047144
Date(g): 27/12/2022 | Date(h): 4/6/1444
Status: In-Force
17.2
The requirement to use the standardized approach for equity exposures in paragraph 10.41 will be subject to a five-year linear phase-in arrangement from 1 January 2023. During the phase-in period, the risk weight for equity exposures will be the greater of:
(1)
The risk weight as calculated using the internal ratings-based approach that applied to equity exposures prior to 1 January 2023; and
(2)
The risk weight set for the linear phase-in arrangement under the standardized approach for credit risk (see paragraph 17.1 above).
