102. Consistently with the principle of proportionality set out in paragraph 70, competent …

Consistently with the principle of proportionality set out in paragraph 70, competent authorities should review the applicant credit institution’s product pricing and structure. For this purpose, consideration may be given, for instance, to the:

• (a) reliance on risky or concentrated sources of income (e.g. sub-prime mortgages, leveraged finance loans, consumer credit, specific customer groups) and its effects on the business model, such as increased vulnerability to changes in the business environment (e.g. decrease in price of real estate, decrease in demand for the products financed through the consumer loans);
• (b) reliance on more volatile sources of income (e.g. trading income, hedging income or other non-recurring sources) and the implications for the long-term sustainability of revenues.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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