A comparison of the Basel III capital requirement models for financial institutions
The purpose of this report is to implement and compare the two Basel III standard methods on how to calculate the capital requirement for finan- cial institutions, related to counterparty credit risk. The models being the Standardized Approach for Counterparty Credit Risk (SA-CCR) and the Internal Model Method (IMM). The SA-CCR model is a simpler and more standardized model with prescribed methods