16. IRB Approach: Minimum Requirements to Use IRB Approach
| No: 44047144 | Date(g): 27/12/2022 | Date(h): 4/6/1444 | Status: In-Force |
| 16.1 | This chapter presents the minimum requirements for entry and on-going use of the internal ratings-based (IRB) approach. The minimum requirements are set out in the following 11 sections: | |
| (1) | Composition of minimum requirements | |
| (2) | Compliance with minimum requirements | |
| (3) | Rating system design | |
| (4) | Risk rating system operations | |
| (5) | Corporate governance and oversight | |
| (6) | Use of internal ratings | |
| (7) | Risk quantification | |
| (8) | Validation of internal estimates | |
| (9) | Supervisory loss-given-default (LGD) and exposure at default (EAD) estimates | |
| (10) | Requirements for recognition of leasing | |
| (11) | Disclosure requirements | |
| 16.2 | The minimum requirements in the sections that follow cut across asset classes. Therefore, more than one asset class may be discussed within the context of a given minimum requirement. | |