Basle regulators may scrap 90% IRB floor for credit risk
NEW YORK -- Global banking regulators will soon abandon their controversial 90%, two-year floor on the benefit banks could reap by moving to the advanced internal ratings based (IRB) technique for calculating capital charges against credit risk under the Basle II capital accord, a US bank regulator said in early October.
"The 90% floor poses so many burdens that it is virtually dead," said Mitch Stengel, deputy head of credit risk modelling at the Office of the Comptroller of the Currency. He
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