68. In this method, the ARW associated to the ARS is growing exponentially, with an upper boundary …

In this method, the ARW associated to the ARS is growing exponentially, with an upper boundary ‘ 𝛼 ’ and a lower boundary ‘ 𝛽 ’ . For a given institution where the ARS is 100 (the riskiest score), the corresponding risk weight will be ‘ α ’ , which is the highest risk weight. Similarly, if the ARS is 0, the corresponding risk weight will be ‘ 𝛽 ’ , which is the lowest risk weight.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/