Purpose: Provide additional information on IRB models used to compute RWA.

Scope of application: The table is mandatory for banks using AIRB or FIRB approaches for some or all of their exposures.

To provide meaningful information to users, the bank must describe the main characteristics of the models used at the group-wide level (according to the scope of regulatory consolidation) and explain how the scope of models described was determined. The commentary must include the percentage of RWAs covered by the models for each of the bank’s regulatory portfolios.

Content: Qualitative information.

Frequency: Annual.

Format: Flexible.

Banks must provide the following information on their use of IRB models:

(a) Internal model development, controls and changes: role of the functions involved in the development, approval and subsequent changes of the credit risk models. Relationships between risk management function and internal audit function and procedure to ensure the

(b) independence of the function in charge of the review of the models from the functions responsible for the development of the models.

(c) Scope and main content of the reporting related to credit risk models.