Step 4 – Determination of the ORC range

To determine the ORC range, institutions should consider the highest and lowest ‘scenario-specific recovery capacity’ respectively in terms of capital including leverage (capital ORC) and liquidity (liquidity ORC) ‘relevant RP indicators’ using the relevant scenarios for each of these dimensions. In this context, institutions should consider as relevant those scenarios where a depletion in terms of capital including leverage (for capital ORC) and/or liquidity (for liquidity ORC) ‘relevant RP indicators’ has occurred.