107. Based on the business plan and financial projections provided, the competent authorities …

Based on the business plan and financial projections provided, the competent authorities should develop their overall supervisory view to assess (a) whether the applicant credit institution’s business model will be viable and sustainable and (b) whether the applicant credit institution will be able to comply with the prudential requirements over the planning horizon. Based on the competent authority’s expert judgment, the objective of the overall supervisory view is to form an integrated and comprehensive assessment of the business plan and financial forecasts and in particular of the credibility of the underlying assumptions. The supervisory view should be based on the assessment of the information received on the business strategy, business environment (potential peers, market trends and other external factors that could affect future profitability) and key internal factors, and compared to the applicant credit institution’s own views (financial forecasts, as explained in paragraphs 93 to 106), in order to assess their overall credibility.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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