Moreover, advanced IRB banks started developing their LGD methodologies in the understanding that they could bring in their own internal operational and eligibility requirements for collateral as long as they could base their LGD ratings on historical evidence, i.e. validate them, and as long as those methodologies would be validated by their supervisors.
Moreover, advanced IRB banks started developing their LGD methodologies in the understanding that they could bring in their own internal operational and eligibility requirements for collateral as long as they could base their LGD ratings on historical evidence, i.e. validate them, and as long as those methodologies would be validated by their supervisors.