Regulatory Alerts2022-05-17
Exposure Draft - IRB national discretions March 2006
The Reserve Bank of New Zealand issued this exposure draft to outline its preliminary decisions on national discretions for the internal ratings-based approach to credit risk under Basel II. The document specifies that the Reserve Bank will exercise certain discretions, such as allowing phased IRB rollout and SME asset-based adjustments, while rejecting others like relaxing data requirements or recognizing additional collateral. It also establishes specific operational parameters, including a NZ$100,000 concentration limit for purchased receivables and a 1:1 conversion rate for Euro thresholds.
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