IRB and Indirect method: Difference between pages

Revision as of 17:32, 3 December 2020

In relation to a Cashflow statement, starting with a reported profit/(loss) figure and then adjusting it to calculate the net cash movement.

(The alternative Direct method shows all the main categories of gross cash receipts and payments explicitly.)

The indirect method is more widely used in external financial reporting.

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-''Capital adequacy - credit risk''
+In relation to a Cashflow statement, starting with a reported profit/(loss) figure and then adjusting it to calculate the net cash movement.
-Internal Ratings Based.
+(The alternative Direct method shows all the main categories of gross cash receipts and payments explicitly.)
-An approach to determining capital requirements for banks and other financial institutions, which includes risk assessments made internally by the regulated institution itself.
+The indirect method is more widely used in external financial reporting.
-Use of an IRB approach and model needs the regulator's approval of the regulated bank's proposed IRB model.
-Also known as Internal ''Risk'' Based approach.
+== See also ==
+* [[Cashflow statement]]
+* [[Direct method]]
+* [[Financial reporting]]
-== See also ==
+[[Category:Accounting,_tax_and_regulation]]
-* [[AIRB]]
+[[Category:Cash_management]]
-* [[ASRF]]
-* [[Capital adequacy]]
-* [[Credit risk]]
-* [[FIRB]]
-* [[Model]]
-* [[RWAs]]
-* [[STA]]