Under Basel rules, what is the meaning of IRB?
A) Internal Risk Based
B) Internal Ratings Based
C) Intrinsic Risk Based
D) Internal Rule Based

Question

Quizplus · Accepted Answer

IRB stands for Internal Ratings Based, which is a method used by banks to calculate their credit risk capital requirement. This approach uses banks' internal models to assess the risk associated with each borrower or counterparty.

Under Basel Rules, What Is the Meaning of IRB