What are the capital requirements

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Reference no: EM131989969

Suppose that the assets of a bank consist of $300 million of retail loans (not mortgages). The PD is 1.5% and the LGD is 80%. What is the risk-weighted assets under the Basel II IRB approach? What are the capital requirements? How would it compare under the standardized approach of Basel I, and under Basel I? Briefly discuss the results.

Reference no: EM131989969

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