Regulatory Alerts2024-06-26
BPR134 IRB Minimum System Requirements
The Reserve Bank of New Zealand issued BPR134 to establish the minimum systems and governance requirements banks must satisfy to use the internal ratings-based approach for measuring credit risk. The document mandates that accredited banks maintain robust rating system designs, rigorous risk quantification processes, and effective corporate governance to ensure accurate calculation of regulatory capital. Compliance with these standards is a mandatory condition of registration, requiring banks to demonstrate the reliability and validity of their internal models on a continuing basis.
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