Australia: New FAQ on Measurement of Credit Risk-Weighted Assets

Australia: New FAQ on Measurement of Credit Risk-Weighted Assets

The Australian Prudential Regulation Authority has published a new frequently asked question (FAQ) on how authorized deposit-taking institutions are to measure credit risk-weighted assets relating to insurance stand-by letters of credit.

 

The FAQ addresses appropriate credit conversion factor to be used in determining the regulatory capital of insurance stand-by letters of credit.

 

Further details are available here.  

 

Photo Credit: Pixabay

 

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