Basel II

Credit Risk – On Balance Sheet
Credit Risk AdjustedOn Balance Sheet Assets =
where,
wi = Risk Weight of Asset
ai = Book Value of Asset on Balance Sheet


On BS Weightings – Basel II

1 comment:

  1. digital signatures14 April 2011 at 10:21

    As the formula for Credit Risk Adjusted On Balance Sheet Assets contains wi,where wi = Risk Weight of Asset.How to calculate Risk Weight of Asset?what are the variables considered while calculating it.

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