To capture credit risk under IRB, banks will have to generate exposure data and calibrate it properly to differentiate between borrowers’ default risks – a complex task in developing countries given the level of industry expertise, lack of historical data and absence of adequate technology.
Economic growth for 2008 stood at 5.0 per cent, slightly below the 2007 level of 5.5 per cent. At the beginning of this year, it appeared that our GDP growth rate would be closer to 2 per cent.