Chapter 3 Internal Ratings Based Approach (arts. 142-191)

Section 1 Permission by competent authorities to use the IRB Approach (arts. 142-150)
Amended
Article 142 Definitions
Applicable
Article 143 Permission to use the IRB Approach
Applicable
Article 144 Competent authorities' assessment of an application to use an IRB Approach
Applicable
Article 145 Prior experience of using IRB approaches
Applicable
Article 146 Measures to be taken where the requirements of this Chapter cease to be met
Applicable
Article 147 Methodology to assign exposure to exposures classes
Applicable
Article 148 Conditions for implementing the IRB Approach across different classes of exposure and business units
Applicable
Article 149 Conditions to revert to the use of less sophisticated approaches
Applicable
Article 150 Conditions for permanent partial use
Section 2 Calculation of risk weighted exposure amounts (arts. 151-157)
Sub-section 1 Treatment by type of exposure class (arts. 151-152)
Applicable
Article 151 Treatment by exposure class
Applicable
Article 152 Treatment of exposures in the form of units or shares in CIUs
Sub-section 2 Calculation of risk weighted exposure amounts for credit risk (arts. 153-156)
Amended
Article 153 Risk-weighted exposure amounts for exposures to corporates, institutions and central governments and central banks
Amended
Article 154 Risk-weighted exposure amounts for retail exposures
Applicable
Article 155 Risk-weighted exposure amounts for equity exposures
Applicable
Article 156 Risk-weighted exposure amounts for other non credit-obligation assets
Sub-section 3 Calculation of risk-weighted exposure amounts for dilution risk of purchased receivables (art. 157)
Applicable
Article 157 Risk-weighted exposure amounts for dilution risk of purchased receivables
Section 3 Expected loss amounts (arts. 158-159)
Applicable
Article 158 Treatment by exposure type
Amended
Article 159 Treatment of expected loss amounts
Section 4 PD, LGD and maturity (arts. 160-165)
Sub-section 1 Exposures to corporates, institutions and central governments and central banks (arts. 160-162)
Applicable
Article 160 Probability of default (PD)
Applicable
Article 161 Loss Given Default (LGD)
Applicable
Article 162 Maturity
Sub-section 2 Retail exposures (arts. 163-164)
Applicable
Article 163 Probability of default (PD)
Amended
Article 164 Loss Given Default (LGD)
Sub-section 3 Equity exposures subject to PD/LGD method (art. 165)
Applicable
Article 165 Equity exposures subject to the PD/LGD method
Section 5 Exposure value (arts. 166-168)
Applicable
Article 166 Exposures to corporates, institutions, central governments and central banks and retail exposures
Applicable
Article 167 Equity exposures
Applicable
Article 168 Other non credit-obligation assets
Section 6 Requirements for the IRB approach (arts. 169-191)
Sub-section 1 Rating systems (arts. 169-177)
Applicable
Article 169 General principles
Applicable
Article 170 Structure of rating systems
Applicable
Article 171 Assignment to grades or pools
Applicable
Article 172 Assignment of exposures
Applicable
Article 173 Integrity of assignment process
Applicable
Article 174 Use of models
Applicable
Article 175 Documentation of rating systems
Applicable
Article 176 Data maintenance
Applicable
Article 177 Stress tests used in assessment of capital adequacy
Sub-section 2 Risk quantification (arts. 178-184)
Amended
Article 178 Default of an obligor
Applicable
Article 179 Overall requirements for estimation
Applicable
Article 180 Requirements specific to PD estimation
Applicable
Article 181 Requirements specific to own-LGD estimates
Applicable
Article 182 Requirements specific to own-conversion factor estimates
Applicable
Article 183 Requirements for assessing the effect of guarantees and credit derivatives for exposures to corporates, institutions and central governments and central banks where own estimates of LGD are used and for retail exposures
Applicable
Article 184 Requirements for purchased receivables
Sub-section 3 Validation of internal estimates (art. 185)
Applicable
Article 185 Validation of internal estimates
Sub-section 4 Requirements for equity exposures under the internal models approach (arts. 186-188)
Applicable
Article 186 Own funds requirement and risk quantification
Applicable
Article 187 Risk management process and controls
Applicable
Article 188 Validation and documentation
Sub-section 5 Internal governance and oversight (arts. 189-191)
Applicable
Article 189 Corporate Governance
Applicable
Article 190 Credit risk control
Applicable
Article 191 Internal Audit