Liquidating property distribution depreciation

Where this is the case, the ADI must notify APRA and provide the ADI’s plan for the timely return to compliance.Failure to notify APRA, produce an acceptable plan, satisfactorily implement the plan or demonstrate that the non-compliance is immaterial will result in reconsideration by APRA of the ADI’s eligibility to use the IRB approach.

There is no explicit maturity adjustment for the retail IRB asset class nor is there a distinction between a FIRB approach and an AIRB approach.For EL, the ADI must compare the sufficiency of eligible provisions (refer to paragraph of this Prudential Standard), there are two IRB approaches to credit risk: the foundation IRB (FIRB) approach and the advanced IRB (AIRB) approach.Under the FIRB approach, an ADI must (subject to the relevant IRB approval) provide its own estimates of PD and M and rely on supervisory estimates for LGD and EAD.For the purpose of this Prudential Standard, the risk-weighted asset amounts that are derived from the IRB risk-weight functions (refer to Attachments B and C) must be multiplied by a factor of 1.06.The basis according to the proportion of risk-weighted assets subject to the standardised and IRB approaches.