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      • CRD / Basel2
        • Practical information for firms
          • Pillar 1 - Advanced approaches
            • Applications - available information

Firms which intend to apply for an advanced approach to credit or operational risk under Pillar 1 of the new framework should consider the following information:

BIPRU

The following BIPRU chapters are of particular relevance for firms applying for advanced approaches:

• BIPRU 1.3. Application for advanced approaches
• BIPRU 4 The IRB approach
• BIPRU 5 Credit Risk Mitigation
• BIPRU 6.5 Operational risk: advanced measurement approaches
• BIPRU 9.9, 9.10, 9.12, 9.13 and 9.14. Securitisation positions under the IRB approach
• BIPRU 13.6 CCR internal model method

Background information

• CP06/3 and PS06/6: in February 2006 we published CP06/3 ('Strengthening Capital Standards 2') that included a complete draft of the GENPRU and BIPRU rules and guidance. PS06/6, published in July 2006, responded to the comments we received on this CP. In both documents, chapters 7, 9, 13, 15, 16, 18 and 19 may provide some relevant background information for firms applying for advanced approaches. Annexes 8 and 9 of CP06/3 will also be relevant. Please note that certain information may have been amended since these documents were published.
• Standing Groups: Firms preparing their IRB or AMA waiver applications may also find papers submitted to certain standing groups helpful. For IRB applicants, most of the Credit Risk Standing Group's papers will be relevant. AMA applicants can refer to the Operational Risk Standing Group's papers.