129. Institutions should ensure that the financial projections used in the analysis are realistic …

Institutions should ensure that the financial projections used in the analysis are realistic and reasonable. These projections/forecasts should be at least based on projecting historical financial data forward. Institutions should assess if these projections are in line with the institution’s economic and market expectations. When institutions have material concerns about the reliability of these financial projections, they should make their own projections of the borrowers’ financial position and repayment capacity.

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/