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Adopting an internal ratings-based approach

An increasing number of banks and building societies aim to achieve ‘internal ratings-based (IRB) capital status over the next few years.

With new banks emerging at a faster rate than ever, securing IRB status enables organisations to optimise their capital and gain a competitive advantage in a growing market.

What does IRB status mean?

Being awarded IRB status confirms a bank has sophisticated risk management capability when it comes to calculating capital requirements.

But complying with the IRB credit risk approach needs significant internal resources and a willingness to tackle an extremely complex project.

That’s why lenders often use our vast experience in this area. We monitor all changes in regulation and help banks and building societies calculate the cost benefit of adopting an internal ratings-based approach.

Support to achieve advanced IRB status

Our flexible consultation approach has helped many lenders create a successful IRB waiver programme and achieve advanced IRB status.

By calling on our advanced analytical and modelling expertise, you can avoid regulation ever becoming an unwieldy burden on your in-house team.

We are experts in the regulation and modelling components that underpin an advanced IRB status, with a particular specialism in one of the more complicated aspects: mortgage LGD. 

Download our IRB guide

To learn more and get detailed tips and advice on IRB best practice, click to download our new IRB guide – or read our latest case study to see how we helped Paragon Bank with its IRB programme.

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