This section addresses the broad standards for own-estimates of PD, LGD, and EAD. Generally, all banks using the IRB approaches must estimate a PD⁵⁰ for each internal borrower grade for corporate, sovereign and bank exposures or for each pool in the case of retail exposures.

⁵⁰ Banks are not required to produce their own estimates of PD for certain equity exposures and certain exposures that fall within the SL sub-classes.