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Credit Risk Measurement and Models: Risk-Weighted Assets (RWAs)
Updated Oct 15, 2024
What you'll learn
- We begin by looking at the various approaches banks use to calculate RWAs for credit risk - the Standardized Approach (SA) and the Internal Ratings-Based (IRB) Approach - before describing some of the issues surrounding RWA calculations.
Course Description
Risk-weighted asset (RWA) calculations enable banks to achieve finer differentiation of the credit risk for various exposures. We begin by looking at the various approaches banks use to calculate RWAs for credit risk - the Standardized Approach (SA) and the Internal Ratings-Based (IRB) Approach - before describing some of the issues surrounding RWA calculations.
