29. The DGS should calculate the ARW for an individual member institution based on a set of risk …

The DGS should calculate the ARW for an individual member institution based on a set of risk indicators from each of the following five risk categories:

• a. Capital: indicators should reflect the level of loss-absorbing capacity of the member institution.
• b. Liquidity and funding: indicators should measure the member institution’s ability to meet its short- and long-term obligations as they come due without adversely affecting its financial condition.
• c. Asset quality: indicators should measure the extent to which the member institution is likely to experience credit losses.
• d. Business model and management: indicators should measure the risk stemming from the member institution’s current business model and strategic plans, the quality of the member institution’s internal governance and in ternal controls.
• e. Potential losses for the DGS: indicators should reflect the potential losses for the DGS stemming from a DGS intervention, which the DGS is unlikely to recover.

Core risk indicators

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.