Question: According to Basel rules, the banks that adopt an IRB foundation system for project finance transactions have to: a) Use the same formulae as for

According to Basel rules, the banks that adopt an IRB foundation system for project finance transactions have to:
a) Use the same formulae as for corporate loans.
b) Use weights relating to the 5 rate grade slotting criteria (strong, good, satisfactory, weak and default).
c) Apply specific formulae for exposures classed as specialized lending.

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