106. With specific regard to cost models, applicant credit institutions significantly relying on …

With specific regard to cost models, applicant credit institutions significantly relying on technology-enabled business models are likely to incur lower marginal costs than credit institutions with transactions linked to high variable costs. As a consequence, such business models’ profitability is in principle likely to increase after a certain critical mass is achieved that absorbs the fixed investment costs. Competent authorities should therefore consider key expenditures for such applicants, such as engineering or product marketing talent and investment in infrastructure.

7.2.6 Overall supervisory view

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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