Regulatory Alerts2025-07-18
Added · Updated
Supervisory Policy Manual Module CA-G-4: Validating Risk Rating Systems under the IRB Approach
The Hong Kong Monetary Authority issued this revised Supervisory Policy Manual module to establish updated standards for Authorized Institutions validating risk rating systems under the Internal Ratings-Based approach. The document outlines specific requirements for the governance, methodology, and ongoing monitoring of risk rating models to ensure they remain accurate and reliable for credit risk capital calculations. It serves as a direct regulatory reference for compliance with capital adequacy rules concerning non-securitization credit exposures.