The A-IRB approach must be changed, says FDIC study
Risk-based capital requirements for banks under Basel II would fall below the levels needed for current prompt corrective action (PCA) purposes, according to a new study by the Federal Deposit Insurance Corporation (FDIC).
In the study, Estimating the Impact of Basel II’s Internal-Ratings Based Approach (A-IRB) in the US, the FDIC said contrary to descriptions of
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