93. Competent authorities should perform a quantitative review of the applicant credit …

Competent authorities should perform a quantitative review of the applicant credit institution’s business plan focusing on the submitted financial forecasts, for both the base case and stress scenario – having regard to the geographical distribution, the types of activities and the market position at the individual and, where applicable, consolidated group or sub-consolidated level (Article 4, letter (a) of the RTS on information for authorisation²³ ). Competent authorities should also review financial positions (e.g. based on the balance sheet), risk (e.g. based on the total risk exposure amount, ‘TREA’, or other measures of risk) and/or organisational and/or statutory constraints.

²³ Article 4, letter (a) of the RTS on information for authorisation provides that the application shall set out ‘forecast information on the applicant credit institution at an individual level and, where applicable, at consolidated group and sub-consolidated levels (indicating the share represented by the credit institution), at least on a base case and stress scenario basis, including: [..]’.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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