Institutions not permitted to use the IRB approach calculate credit risk-weighted exposure amounts under the standardised approach: determine exposure values (with the credit conversion factors for off-balance-sheet items and monitoring of arrangements that are not commitments), assign each exposure to one of the exposure classes (central governments, regional and local authorities, public sector entities, development banks, international organisations, institutions, corporates including specialised lending, retail, real estate secured, land acquisition and development, defaulted, subordinated debt, covered bonds, securitisation, CIUs, equity and other items), and apply the class risk weights, using credit assessments of nominated external credit assessment institutions consistently and in line with Articles 135 to 141, with the currency mismatch add-on and the real estate value and loan-to-value rules.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.