Are the proposed relationships reasonable between a loan's risk weight and its default probabilities, loss given default, exposure, and other inputs to the IRB approach? As I suggested earlier, if we do not get relative risk weights about right, it will be difficult to achieve the broad goals established by the Basel Committee – such as encouraging effective risk-management practices and discouraging capital arbitrage.
HOUSEHOLD ACCESS TO CONSUMER CREDIT AND MORTGAGE LOANS 1  INTRODUCTION  Good morning, ladies and gentlemen. Good morning, Enrique. Let me start by saying that it’s an honour for the National Bank of Belgium to host this year’s ACCIS Conference. And it’s with great pleasure that I accepted Enrique’s invitation to welcome you with a few words.