13. Furthermore, competent authorities may identify credit institutions other than those covered in …

Furthermore, competent authorities may identify credit institutions other than those covered in paragraph 11 that should also apply sections 4 and 5. Competent authorities should require the application of these sections if they identify signs of deteriorating asset quality. Competent authorities should consider the following elements and their interactions when assessing the applicability of sections 4 and 5:

• a) increased inflows of NPEs;
• b) a high or increased level of FBEs;
• c) a high or increased level of foreclosed assets;
• d) low coverage ratios;
• e) breached early warning indicators;
• f) an elevated Texas ratio;
• g) the quality and appropriateness of workout activity.

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/