Article 143

Capital Requirements Regulation (CRR) > PART THREE > TITLE II > CHAPTER 3 > Section 1 > Article 143
Article 143
Permission to use the IRB Approach
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1. Where the conditions set out in this Chapter are met, the competent authority shall permit institutions to calculate their risk-weighted exposure amounts using the Internal Ratings Based Approach (hereinafter referred to as “IRB Approach”).

2. Prior permission to use the IRB Approach, including own estimates of LGD and conversion factors, shall be required for each exposure class and for each rating system and internal models approaches to equity exposures and for each approach to estimating LGDs and conversion factors used.