Variation in Credit Quality
Banks discovered a wide variation in credit quality within risk-weight categories
Basel I lumps all commercial loans into the 8% capital category
Internal models calculations can lead to capital allocations on commercial loans that vary from 1% to 30%, depending on the loan’s estimated riskBanks discovered a wide variation in credit quality within risk-weight categories
Basel I lumps all commercial loans into the 8% capital category
Internal models calculations can lead to capital allocations on commercial loans that vary from 1% to 30%, depending on the loan’s estimated risk.
Basel I lumps all commercial loans into the 8% capital category
Internal models calculations can lead to capital allocations on commercial loans that vary from 1% to 30%, depending on the loan’s estimated riskBanks discovered a wide variation in credit quality within risk-weight categories
Basel I lumps all commercial loans into the 8% capital category
Internal models calculations can lead to capital allocations on commercial loans that vary from 1% to 30%, depending on the loan’s estimated risk.
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