316. If, during the ongoing review of internal approaches for the calculation of own funds …

If, during the ongoing review of internal approaches for the calculation of own funds requirements, competent authorities identify model deficiencies that could lead to underestimation of the P1R, they should set P2R only where this is determined to be more appropriate than other supervisory measures. Competent authorities should only set P2R to cover these deficiencies:

• a. where it is not possible to address them under P1R through other supervisory measures, such as requiring institutions to adjust their models or apply an appropriate margin of conservatism to their estimates;
• b. by taking into account whether the institution has become bound by the output floor in accordance with Article 92 of Regulation (EU) No 575/2013 and, if this is the case, proceed as explained in the next paragraph.

Such P2R should only be set as an interim measure while the deficiencies are addressed.

1. Oversigt

1.1 Referencer

• Artikel 92 Kapitalgrundlagskrav

1.2 Identificerede krav

1.3 Relaterede standarder

2. Identificerede krav

3. Relaterede standarder

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/