26. For the purpose of paragraph 21(d) institutions should analyse whether, over the relevant …

For the purpose of paragraph 21(d) institutions should analyse whether, over the relevant historical observation period, there were significant changes in their lending standards or recovery policies or in the relevant legal environment, including changes in insolvency law, legal foreclosure procedures and any legal regulations related to realisation of collaterals, which may influence the level of risk or the distribution or ranges of the risk characteristics in the portfolio covered by the considered model. Where institutions observe such changes they should compare the data included in the RDS before and after the change of the policy. Institutions should ensure comparability of the current underwriting or recovery standards with those applied to the observations included in the RDS and used for model development.

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/