PRA has updated its supervisory statement on internal ratings based (IRB) approaches to credit risk. It has removed expectations now superseded because of actions by the Commission. The updates made include:

  • deleting expectations relating to third country equivalence;
  • amending expectations for the notification of changes to IRB rating systems;
  • deleting a reference to form FSA004;
  • moving an updated model change notification pro-forma (to align with relevant regulation) from the statement to now be accessible through the PRA webpage; and
  • deleting or amending other paragraphs as well as correcting various typographical errors.

(Source: PRA Updates Statement on IRB Approaches)