Regulatory fragmentation drives Basel RWA impasse

European Commissioner rejects model floors that US regulators have already imposed

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The US implementation of bank capital rules could make the use of internal models moot, potentially entrenching an international impasse on the adoption of standardised floors for risk-weighted assets (RWAs) and modifications to the internal ratings-based (IRB) approach to credit risk.

"Much of the debate internationally is where the standardised approach will end up coming into play, as opposed to the IRB, but still maintaining the IRB framework. I think it is actually much more debatable if

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