AIRB

Capital adequacy - credit risk.

Advanced Internal Ratings Based.

AIRB is an approach to determining capital requirements for banks and other financial institutions, which includes advanced credit risk assessments made internally by the regulated institution itself.

As for all internal models approaches, the internal model used by the institution must be approved by the regulator.

See also

• Capital adequacy
• Credit risk
• Exposure At Default (EAD)
• FIRB
• Internal Models Approach
• IRB
• Loss Given Default (LGD)
• Probability of Default (PD)
• Risk Weighted Assets (RWAs)
• Standardised Approach (STA)