41. Competent authorities should assess the ‘adjusted ORC’ specified in accordance with paragraphs …

Competent authorities should assess the ‘adjusted ORC’ specified in accordance with paragraphs 39 and 40, assigning the following levels considering the ‘relevant RP indicators’ thresholds and the related regulatory requirements:

• a. ‘satisfactory’ – in cases where the ‘relevant RP indicators’ of the institutions after the inclusion of the ‘adjusted ORC’ are above their thresholds defined in line with the Guidelines on recovery plan indicators;
• b. ‘adequate with potential room for improvement ’ – in cases where the ‘relevant RP indicators’ of the institutions after the inclusion of the ‘adjusted ORC’ would fail to be above the thresholds defined in line with the Guidelines on recovery plan indicators, but they would still be equal to or higher than institutions’ capital including leverage and liquidity regulatory requirements referred to in paragraph 20 adding all applicable regulatory buffers;
• c. ‘weak’ – in cases where the ‘relevant RP indicators’ of the institutions after the inclusion of the ‘adjusted ORC’ would fail to meet the institutions’ capital (including leverage) and liquidity regulatory requirements referred to in paragraph 20 adding all applicable regulatory buffers.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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