After the IRB parallel period, the excess loan loss reserve that can be included in tier 2 capital shall not exceed 0.6% of the corresponding credit risk-weighted assets.

Compared with the standard method provided by Basel Accord, internal credit rating can better describe the actual credit risk of banks and more accurately match the capital requirements corresponding to credit risk.

Judging from the development of commercial banks, commercial banks have two business models. One is the British model. Commercial banks mainly finance short-term commercial funds, which have the characteristics of short lending period and high liquidity.

That is, borrowing deposits at a lower interest rate and lending loans at a higher interest rate. The deposit-loan spread is the main profit of commercial banks. This business model is relatively safe and reliable for banks. The other one is from Germany, and its business is comprehensive. Commercial banks not only finance short-term commercial funds, but also finance long-term fixed capital, that is, engage in investment banking business.

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