Regulatory Alerts2005-01-06
Added
Guidelines on IRB Adoption
The Monetary Authority of Singapore issued these guidelines to regulate the adoption of the Internal Ratings-based Approach by financial institutions incorporated in Singapore. The document outlines the application process for supervisory permission, defines parameters for IRB rollout, and specifies elements required through statutory instruments. It further details supervisory expectations for banks and provides annexes covering validation principles and information requests for rollout plans.
Guidelines
Published Date: 06 January 2005
Guidance on adopting the Internal Ratings-based Approach (IRB), including when they will be permitted to adopt IRB and the parameters for an IRB rollout.
Capital Adequacy
Applies to:
Full Bank (Locally Incorporated)
,
Wholesale Bank (Locally Incorporated)
View Document
Guidelines on IRB Adoption
(192.3 KB)
These guidelines apply to all financial institutions (FIs) incorporated in Singapore that intend to adopt IRB for calculating regulatory capital requirements.
They cover topics such as:
Application process for supervisory permission.
Parameters for a bank's IRB rollout.
Elements required through statutory instruments.
Supervisory expectations for FIs.
See also:
Letter to CEOs on Risk Management (12 KB)
Annex 1A: Guidelines on IRB Adoption: Supervisory Permission and Rollout Parameters (Appendix B) (141.9 KB)
Annex 2: Summary of Principles Underlying “Validation” of Rating Systems (7.32 KB)
Annex 3: Information Request on IRB Rollout Plans and Preparation (19 KB)