47. Institutions should ensure that the impact of the final MoC does not result in lowering the …

Institutions should ensure that the impact of the final MoC does not result in lowering the risk parameter estimates and in particular that:

• (a) the MoC stemming from the general estimation error is greater than zero;
• (b) the MoC stemming from each of the categories A and B is proportionate to the increased uncertainty in the best estimate of risk parameters caused by the identified deficiencies listed in each category. In any case, the MoC under each of the categories A and B should be greater than or equal to zero.

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/