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Cover image for book The Basel II Risk Parameters

The Basel II Risk Parameters

Estimation, Validation, and Stress Testing
By:Bernd Engelmann; ‎Robert Rauhmeier
Publisher:Springer Nature
Print ISBN:9783540330851
eText ISBN:9783540330875
Edition:1
Copyright:2006
Format:Page Fidelity

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A critical problem in the practice of banking risk assessment is the estimation and validation of the Basel II risk parameters PD (default probability), LGD (loss given default), and EAD (exposure at default). This book presents the state-of-the-art in designing and validating rating systems and default probability estimations, and outlines techniques to estimate LGD and EAD. Also included is a chapter on stress testing of the Basel II risk parameters.