IRB

Capital adequacy - credit risk

Internal Ratings Based.

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

Use of an IRB approach and model needs the regulator's approval of the regulated bank's proposed IRB model.

Also known as Internal Risk Based approach.

See also

• AIRB
• ASRF
• Capital adequacy
• Credit risk
• FIRB
• Model
• Risk Weighted Assets (RWAs)
• Standardised Approach (STA)