+7. Business plan analysis
---+7.1 General criteria
------+67. The competent authorities’ assessment of the business plan should be based on the relevant …
------+68. Consistently with paragraph 13, competent authorities should assess the exposure to ML/FT risks …
------+69. Consistently with the principles set out in paragraphs 15 and 16, competent authorities should …
------+70. Competent authorities should calibrate the intensity of their assessment in light of the …
------+71. As a general criterion, competent authorities should perform the qualitative and quantitative …
------+72. Without prejudice to paragraph 71, in order to support the business plan assessment and to the …
------+73. To ensure supervisory continuity between the authorisation phase and ongoing supervision of the …
---+7.2 Assessment methodology
------+74. Competent authorities should undertake a qualitative review of the business strategy of the …
------+75. For this purpose, competent authorities should achieve a clear view on: (a) the types of …
------+76. With specific regard to innovative business models and/or delivery mechanisms, competent …
------+77. A clear understanding of the planned business strategy will allow the competent authorities to …
------+78. Competent authorities should achieve a clear view on the planned sources to finance the planned …
------+79. Competent authorities should perform a more intense assessment, including detailed questions …
------+80. Funding costs should be assessed in the context of the assessment of the financial forecast …
------+81. The competent authorities should review the submitted information, in particular as set out in …
------+82. Competent authorities should review the submitted information in particular as set out in …
------+83. Consistently with the proportionality approach set out in paragraph 70, competent authorities …
------+84. Where relevant, competent authorities should ensure that the submitted description of the …
------+85. In the assessment of risks to liquidity and funding, competent authorities should verify the …
------+86. To form a view on the plausibility of an institution’s strategic assumptions, competent …
------+87. Consistently with the proportionality approach set out in paragraph 70, competent authorities …
------+88. For this purpose, competent authorities should review the analysis of the trends in the target …
------+89. Where appropriate and on a case-by-case analysis, reference to existing players and potential …
------+90. Consistently with the proportionate approach set out in paragraph 71 and on a case-by-case …
------+91. In this regard, the areas for analysis by competent authorities should include the main …
------+92. Competent authorities should also assess whether the financial forecasts match the business …
------+93. Competent authorities should perform a quantitative review of the applicant credit …
------+94. The purpose of the quantitative review of the financial forecasts of the business plan should …
------+95. The assessment of the financial forecasts should reflect the applicant credit institution’s …
------+96. When assessing the profitability of the business plan, competent authorities should pay special …
------+97. For these purposes, competent authorities should review the explanation of the initial …
------+98. Competent authorities may need to assess a business plan with a longer time horizon, for …
------+99. To the extent possible and where appropriate, competent authorities should determine a relevant …
------+100. Competent authorities should consider assessing profitability trends and ratios, having regard …
------+101. Competent authorities should be able to gain a clear understanding of the institution’s …
------+102. Consistently with the principle of proportionality set out in paragraph 70, competent …
------+103. Competent authorities should gain a clear understanding of the various revenue models (e.g. …
------+104. Competent authorities should pay particular attention to high growth rates and associated risk …
------+105. The target cost structure (e.g. labour, administrative or IT costs) should be reviewed in …
------+106. With specific regard to cost models, applicant credit institutions significantly relying on …
------+107. Based on the business plan and financial projections provided, the competent authorities …
------+108. Based on the reviewed information, the competent authority should challenge the applicant …
------+109. The development of the supervisory view and the sensitivity analysis should be subject to …

7. Business plan analysis

7. Business plan analysis

1. Overview

,
7.1 General criteria

7.1 General criteria
7.2 Assessment methodology

7.2.1 Business strategy

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards
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