A
AcadiFi
Basel RegulationHard

Under the Foundation IRB approach, a bank estimates a 1-year PD of 2.5% for a portfolio of senior unsecured corporate loans with supervisory LGD of 45% and EAD of $500 million. The Basel IRB risk weight function produces a risk weight of 118% for this PD/LGD combination. The minimum capital requirement (Pillar 1 only) is closest to: