The Basel Committee has published a second consultation on Revisions to the Standardised Approach for credit risk, which forms part of its drive to simplify requirements. Respondents to the first consultation said the complete removal of references to ratings was unnecessary and undesirable. The new proposal reintroduces the use of ratings, in a non-mechanistic manner, for exposures to banks and corporates. It also includes alternative approaches for jurisdictions that do not allow the use of external ratings for regulatory purposes. Other changes include modifying the proposed risk weighting of real estate loans, and proposals for exposures to multilateral development banks, retail and defaulted exposures, and off-balance sheet items. The credit risk standardised approach treatment for sovereigns, central banks and public sector entities are not within the scope of these proposals. Consultation closes on 11 March 2016, and the Basel Committee aims to publish the revised standardised approach by the end of 2016.  (Source: Basel Committee Consults on Standardised Approach to Credit Risk)