IRB and Interest rate: Difference between pages

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''Capital adequacy - credit risk''
(IR)


Internal Ratings Based.
The rate of return receivable from lending money, or the rate payable on a borrowing.


An approach to determining capital requirements for banks and other financial institutions, which includes risk assessments made internally by the regulated institution itself.
In wholesale markets, the market interest rates are conventionally quoted on a per annum basis.


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 ==
* [[Bridge financing]]
* [[Cost-plus loan pricing]]
* [[Discount rate]]
* [[Discount yield]]
* [[Interest]]
* [[Interest rate cap]]
* [[Interest rate exposure]]
* [[Interest rate floor]]
* [[Interest rate guarantee]]
* [[Interest rate option]]
* [[Interest rate risk]]
* [[Interest rate tiering]]
* [[Lombard rate]]
* [[Monetary policy]]
* [[Prime rate]]
* [[Rate reset]]
* [[Yield]]
* [[Zero rate provision]]


== See also ==
[[Category:Manage_risks]]
* [[AIRB]]
* [[ASRF]]
* [[Capital adequacy]]
* [[Credit risk]]
* [[FIRB]]
* [[Model]]
* [[RWAs]]
* [[STA]]

Revision as of 06:24, 20 July 2016

(IR)

The rate of return receivable from lending money, or the rate payable on a borrowing.

In wholesale markets, the market interest rates are conventionally quoted on a per annum basis.


See also