105. Institutions should be able to demonstrate that the methods that they choose for the purpose …

Institutions should be able to demonstrate that the methods that they choose for the purpose of LGD estimation are appropriate to their activities and the type of exposures to which the estimates apply and they should be able to justify the theoretical assumptions underlying those methods. The methods used in the LGD estimation should in particular be consistent with the collection and recovery policies adopted by the institution and should take into account possible recovery scenarios as well as potential differences in the legal environment in relevant jurisdictions.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

  EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

  DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.