Chart 1: Computation of Credit Risk Weighted Assets under Basel IIChart 1 is a chart showing Computation of Credit Risk Weighted Assets under Basel II. It starts by showing that Banks supply the following inputs, PD, LGD, EAD and M. This then goes into a Capital Formula developed by supervisors for each exposure category. This formula then creates the dollar amount of capital required. The capital from the formula multiplied by 12.5 then gives the final RWA. As a memorandum footnote the following equation is shown, E=PDxELGDxEAD. M is not required for retail exposures.