(i) The Internal Models Market-based Approach
CA-5.8.135
To be eligible for the internal models market-based approach a bank must demonstrate to CBB that it meets certain quantitative and qualitative minimum requirements at the outset and on an ongoing basis. A bank that fails to demonstrate continued compliance with the minimum requirements must develop a plan for rapid return to compliance, obtain CBB's approval of the plan, and implement that plan in a timely fashion. In the interim, banks would be expected to compute capital charges using a simple risk weight approach.
Apr 08CA-5.8.136
CBB will periodically develop detailed examination procedures to ensure that banks' risk measurement systems and management controls are adequate to serve as the basis for the internal models approach.
Apr 08
