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CA-1.3.19

The second alternative methodology, which is subject to the fulfilment of certain conditions and the use of which is, therefore, conditional upon the explicit approval of the Agency, is set out in detail in chapter CA-9 including the procedure for obtaining the Agency's approval. This method allows banks to use risk measures derived from their own internal risk measurement models (Internal Models Approach), subject to seven sets of conditions which are described in detail in chapter CA-9.