are going to benefit, as they will attract less than an 8% charge 9 . Relevance of Basel II assumptions in the Asian context The risk weights/ implied correlations for different exposures under standardized or IRB approaches are based upon certain assumptions which may not be applicable in the Asian context.
[7] Chart 2 shows that the measures have resulted in a sizeable expansion of the ECB’s balance sheet, illustrating the value of central banks being ready to commit their balance sheets to fight risks to their policy aims, especially in the event of a major shock to the real economy and the financial system.