Phase-in for the Removal of the Internal Ratings-Based Approach for Equity Exposures
Effective from Dec 28 2022 - Dec 31 2022
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| 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). | |