Moreover, their exposures are skewed toward large corporate firms for which information that can be used to estimate the necessary risk inputs is abundant. The most difficult problem occurs for a foreign bank that chooses F-IRB at home and chooses A-IRB here.
Moreover, (non-financial) corporate balance sheet data indicate that many Australian companies currently hold relatively high levels of cash, suggesting that they have access to resources to finance investment when the time comes. The exchange rate is too high? The exchange rate has declined somewhat relative to its peak in the first half of 2013.