What is FOUNDATION METHODOLOGY?

A creditbased CAPITAL ALLOCATION process promulgated by the BANK FOR INTERNATIONAL SETTLEMENTS (BIS) under the INTERNAL RATINGS BASED (IRB) APPROACH. BANKS use internal models to determine a COUNTERPARTY

More On This Topic



Link to This Definition
Did you find this definition of FOUNDATION METHODOLOGY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary