Hello,
In the notes it says that for AMA a firm will not have to hold capital against unexpected losses if they are provisioned for correctly. In one of the problems in that section it says that the "default" is EL+UL and then only for UL if the firm can show that expected losses are properly budgeted for.
Which of these views is correct?
Thanks!
Shannon
In the notes it says that for AMA a firm will not have to hold capital against unexpected losses if they are provisioned for correctly. In one of the problems in that section it says that the "default" is EL+UL and then only for UL if the firm can show that expected losses are properly budgeted for.
Which of these views is correct?
Thanks!
Shannon
