We would also permit any bank that meets the infrastructure requirements of A-IRB and AMA the ability to quantify and develop the necessary risk parameters on credit exposures and develop measurement systems for operational risk exposures - to choose Basel II.
Banks that choose to use AIRB and AMA would need to consider several factors, including the benefits of Basel II relative to its costs, the nature of their operations, the capital impact, and the message they want to send their counterparties about their risk-management techniques.