Nordea's roll-out plan
Nordea has chosen a stepwise roll-out plan for the different credit portfolios. In June 2007 Nordea received approval to use the Foundation Internal Rating Based approach (FIRB) for its corporate and institution portfolios, equal to approx. 55% of total credit risk exposures.
In December 2008 Nordea was approved of using the IRB approach for the Retail exposure class in the Nordic countries.
Nordea aims to continue the roll-out of the IRB approaches. The main focus is the development of advanced IRB for corporate customers in the Nordic area.
The standardised approach will continue to be used for smaller portfolios and new portfolios for which internal models are not yet in place.