+93. Competent authorities should perform a quantitative review of the applicant credit …

93. Competent authorities should perform a quantitative review of the applicant credit …

Competent authorities should perform a quantitative review of the applicant credit institution’s business plan focusing on the submitted financial forecasts, for both the base case and stress scenario – having regard to the geographical distribution, the types of activities and the market position at the individual and, where applicable, consolidated group or sub-consolidated level (Article 4, letter (a) of the RTS on information for authorisation23 ). Competent authorities should also review financial positions (e.g. based on the balance sheet), risk (e.g. based on the total risk exposure amount, ‘TREA’, or other measures of risk) and/or organisational and/or statutory constraints.

23 Article 4, letter (a) of the RTS on information for authorisation provides that the application shall set out ‘forecast information on the applicant credit institution at an individual level and, where applicable, at consolidated group and sub-consolidated levels (indicating the share represented by the credit institution), at least on a base case and stress scenario basis, including: [..]’.

1. Overview

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1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

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.