81. The DGS should calibrate the calculation method based on expert judgement, taking into …

The DGS should calibrate the calculation method based on expert judgement, taking into consideration the characteristics of the national banking sector, and the degree of heterogeneity among member institutions. The calibration of the calculation method includes:

• a. the selection of risk indicators;
• b. the weighting of the risk indicators;
• c. the upper and lower boundaries of the IRS;
• d. the method for calculating the IRS;
• e. the thresholds of the ARW;
• f. the method for calculating the ARW;
• g. the application of optional modifications to the calculation formula.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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