Internal models approach for credit risk used by the big 4 banks to survive RBNZ capital review, but increased transparency and heightened conservatism foreshadowed

*This article was published in our email for paying subscribers early on Thursday morning. See here for more details and how to subscribe.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

1 Comments

This article provides an overview of how internal models are used to calculate the Solvency Capital Requirement and the advantages and disadvantages of adopting this approach. It also highlights the use test, proxy techniques, and the development of full or partial internal models. cheap-Dissertation writing service