In the Basel II standardised approach to external rating grades,the asset counterparty weights for capital adequacy guidelines are:

Question

Quizplus · Accepted Answer

Under the Basel II standardised approach, the asset counterparty weights for capital adequacy guidelines are based on external rating grades assigned by recognized rating agencies. The counterparty weights range from 20% for higher-rated parties to 150% for lower-rated parties. Therefore, the correct answer is C) 20%, 50%, 100% and 150%. Option A is incorrect because it does not include the 150% weight. Option B is incorrect because it includes a weight of 10%, which is not present in the standardised approach. Option D includes a weight of 200%, which is also not present in the standardised approach.

In the Basel II Standardised Approach to External Rating Grades,the