CA-5.2.29

For each of the asset classes covered under the IRB framework, there are three key elements:

(a) Risk components — estimates of risk parameters provided by banks some of which are CBB's estimates;
(b) Risk-weight functions — the means by which risk components are transformed into risk-weighted assets and therefore capital requirements; and
(c) Minimum requirements — the minimum standards that must be met in order for a bank to use the IRB approach for a given asset class.
Amended: April 2011
Apr 08