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Basel - Coggle Diagram
Basel
Basel III
loss-absorbing capacity beyond common standards (tier1)
Eliminate tier 3 (introduced in Basel II)
Risk-intensive leverage ratio as a backstop to address model risk
Reduce procyclicality
Liquidity coverage ratio
Net stable funding ratio
Basel II
Pillar 1
Min cap requirement
Credit risk
Standard (External)
Standard approach
RW:
Cooperate (20%-150%)
RWA x 8% (Reg. Cap.)
RW; Retail
(non-montage 75% ; mortage 35%)
RWA x 8% (Reg. Cap.)
External
agency: ECAIs
IRB (Internal ratings Based)
Fundation internal ratings
Advanced internal ratings
IRB (Internal)
Pillar 2
Supervision process
ICCAP
Pillar 3
Disclose to the market
Basel I
Capital ration > 8%
Capital = 8% of risk -weighted assests (RWA)
Both tier 1 and tier 2 capital
Cash: 0%
Mortage: 50%
Other commercial: 100%