+Title 4 Business model analysis
---+4.1 General considerations
------+69. This title specifies the criteria for the assessment of the business model and strategy of the …
------+70. Without undermining the responsibility of the investment firm’s management body for running and …
------+71. Competent authorities should use the outcome of the BMA to support the assessment of all other …
------+72. Competent authorities should also use the BMA to support the identification of the investment …
------+73. In addition, competent authorities should use the BMA to assess prudential implications of …
------+74. Competent authorities should undertake the following steps as part of the BMA in a …
------+75. For category 3 investment firms, where the scale and complexity of an investment firm’s …
------+76. To conduct the BMA, competent authorities may use the following sources of quantitative and …
---+4.2 Preliminary assessment
------+77. Competent authorities should analyse the investment firm’s main activities, geographies and …
------+78. For this purpose, competent authorities should consider a range of relevant metrics at the …
------+79. Competent authorities should use this preliminary assessment to: a. determine the materiality …
---+4.3 Identifying the areas of focus for the BMA
------+80. Competent authorities should determine the focus of the BMA. They should focus on the business …
---+4.4 Assessing the business environment
------+81. To form a view on the plausibility of an investment firm’s strategic assumptions, competent …
---+4.5 Analysis of the current business model
------+82. To understand the means and methods used by an investment firm to operate and generate profits …
------+83. Competent authorities should undertake both a static and trend analysis of key quantitative …
------+84. Areas for analysis by competent authorities may include: a. profit and loss: competent …
------+85. Competent authorities should undertake an analysis of qualitative features of the investment …
------+86. Areas for analysis by competent authorities may include: a. key external dependencies …
---+4.6 Analysis of the strategy
------+87. Competent authorities should undertake a quantitative and qualitative forward-looking analysis …
------+88. Areas for analysis by competent authorities may include: a. overall strategy: competent …
---+4.7 Assessing business model viability
------+89. Having conducted the analyses covered in Sections 4.4 and 4.5, competent authorities should …
------+90. Competent authorities may assess the level of returns against the following criteria: a. return …
---+4.8 Assessing the sustainability of the investment firm’s strategy
------+91. Having conducted the analyses covered in Sections 4.4 to 4.6, competent authorities should …
------+92. In particular, competent authorities may assess the sustainability of the investment firm’s …
------+93. For non-complex investment firms and where financial projections are not available or not …
---+4.9 Identification of key vulnerabilities
------+94. Having conducted the BMA, competent authorities should assess the key vulnerabilities to which …
------+95. Following the above assessment, competent authorities should form a view on the viability of …
---+4.10 Summary of findings and scoring
------+96. Based on the assessment of the viability and sustainability of the business model, competent …
------+Score Supervisory view Considerations
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Title 4 Business model analysis
Title 4 Business model analysis
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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