189. For the purpose of considering the possible adverse change in economic conditions during the …

For the purpose of considering the possible adverse change in economic conditions during the expected length of the recovery processes referred to in Article 54(2)(a) of the RTS on IRB assessment methodology the LGD in-default should reflect at least downturn conditions, where the estimates of LGD in-default that are appropriate for an economic downturn are more conservative than the long-run average LGD for defaulted exposures, referred to in paragraph 180.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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