The minimum requirements set out in this section apply to both foundation and advanced approaches unless noted otherwise. Generally, all IRB banks must produce their own estimates of PD⁴⁹ and must adhere to the overall requirements for rating system design, operations, controls, and corporate governance, as well as the requisite requirements for estimation and validation of PD measures. Banks using their own estimates of LGD and EAD for retail exposures must also meet the incremental minimum requirements for these risk factors included in paragraphs CA-5.8.79 to CA-5.8.100.

⁴⁹ Banks are not required to produce their own estimates of PD for certain equity exposures and certain exposures that fall within the SL sub-class.