The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
The BBA haws responded to the PRA’s consultation clarifying its expectations for banks seeking to progress to the Internal Ratings Based approach to assessing credit risk weighted assets
We welcomed the clarification of the process but recommended a series of sequential ‘stage gates’ that would help IRB aspirant banks understand the modular approach better.
Whilst understanding the need for conservatism we observed that the reference points proposed in the calculation of Probability of Possession Given Default were too conservative.
Finally we highlighted the potential for double counting between Expected Credit Losses under IFRS 9 and IRB modelling as an important issue that would merit further discussion with the PRA.
Please read the full response via the link below.
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