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INTM267734 | Foreign banks trading in the UK through permanent establishments: The approach in determining an adjustment to funding costs - STEP 2: Risk weighting the assets - the Basel II regulatory regime: Pillar 1 - credit risk

From HM Revenue & Customs · International Manual

The credit risk component can be calculated under one of three different approaches, which have varying degrees of sophistication:

  • The Standardised Approach (TSA)

  • The Foundation Internal Rating Based (IRB) Approach

  • The Advanced IRB Approach