How EAD Is Calculated
Calculation of EAD is different under foundation and advanced approach. While under foundation approach (F-IRB) calculation of EAD is guided by the regulators, under the advanced approach (A-IRB) banks enjoy greater flexibility on how they calculate EAD.
Read more about this topic: Exposure At Default
Famous quotes containing the word calculated:
“Free from public debt, at peace with all the world, and with no complicated interests to consult in our intercourse with foreign powers, the present may be hailed as the epoch in our history the most favorable for the settlement of those principles in our domestic policy which shall be best calculated to give stability to our Republic and secure the blessings of freedom to our citizens.”
—Andrew Jackson (17671845)