• BANK 4.3.1 BANK 4.3.1 Introduction

    This Part sets out a standardised approach for credit risk assessment and requires a banking business firm to establish and implement policies to identify, measure, evaluate, manage and control or mitigate credit risk and to calculate its credit risk capital requirement.

    Derived from QFCRA RM/2014-2 (as from 1st January 2015).

    • BANK 4.3.1 Guidance

      1 Credit risk assessment under this Part is different from the evaluation (often called credit assessment) made by a firm as part of its credit approval process.
      2 Credit assessment is part of the firm's internal commercial decision-making for approving or refusing credit; it consists of the evaluation of a prospective counterparty's repayment ability. In contrast, credit risk assessment is done by the firm (using ratings and risk-weights set out in these rules) as part of calculating its credit risk capital requirement.
      Amended by QFCRA RM/2015-3 (as from 1st January 2016).