54. Credit institutions should use temporary adjustments to an allowance only as an interim …

Credit institutions should use temporary adjustments to an allowance only as an interim solution, in particular in transient circumstances or when there is insufficient time to appropriately incorporate relevant new information into the existing credit risk rating and modelling process, or to re-segment existing groups of lending exposures, or when lending exposures within a group of lending exposures react to factors or events differently than initially expected.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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