108. Based on the reviewed information, the competent authority should challenge the applicant …

Based on the reviewed information, the competent authority should challenge the applicant credit institution’s assumptions and develop its own supervisory view. If the assumptions are not credible, competent authorities may develop alternative assumptions and conduct a sensitivity analysis to determine the quantitative impact on the related areas of the business plan. The line-by-line challenge and the respective application of alternative assumptions, if needed, will allow the competent authority to quantify and assess the overall impact of the sensitivity analysis on the financial forecasts and ultimately on the most relevant prudential requirements. The competent authority may challenge the base case as well as stress case scenario.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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