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      Question

      Which out of the following is not one of the approaches

      of calculating Credit Risk as per the Basel-II framework?
      A Value at Risk Correct Answer Incorrect Answer
      B Standardized Approach Correct Answer Incorrect Answer
      C Foundation Internal Ratings-based approach Correct Answer Incorrect Answer
      D Advanced Internal Ratings-based approach Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Basel II also provides banks with more informed approaches to calculate capital requirements based on credit risk, while taking into account each type of asset’s risk profile and specific characteristics. The two main approaches include the:  Standardized approach, Internal ratings-based approach (Foundation Internal Ratingsbased approach and Advanced Internal Ratings-based approach)

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