50. DGSs should apply expert judgement to calibrate the thresholds, but should in any case respect …

DGSs should apply expert judgement to calibrate the thresholds, but should in any case respect the following minimum thresholds:

• a. For the leverage ratio, core equity tier 1 ratio, liquidity coverage ratio and net stable funding ratio, if the value of the indicator of a member institution is lower than the applicable minimum regulatory requirement according to Article 92(1), 412 and 413 of Regulation (EU) No. 575/2013, then the corresponding IRS should be 100.
• b. For the capital coverage ratio, if the value of the indicator of a member institution is lower than 100%, then the corresponding IRS should be 100.
• c. For the total risk exposure amount / total assets ratio and covered deposits / unencumbered assets ratio, if the value of the indicator of a member institution is above 100%, then the corresponding IRS should be 100.

The ‘bucket’ method for the IRS

1. Overview

1.1 References

• Article 92 1.
• Article 412 Liquidity coverage requirement
• Article 413 Stable funding requirement

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/