33. For the purpose of paragraph 28(e) institutions should analyse whether there were significant …

For the purpose of paragraph 28(e) institutions should analyse whether there were significant changes in the lending standards or recovery policies over the relevant historical observation period that may influence the level of risk or the distribution or ranges of the characteristics of relevant risk drivers in the portfolio covered by the considered model. Where institutions observe such changes they should analyse the potential bias in the estimates of risk parameters resulting from these changes in the following manner:

• (c) with regard to the PD estimation, in terms of the level of default rates and the likely range of variability of default rates;
• (d) with regard to the LGD estimation, in terms of loss rates, average duration of the recovery processes, frequencies of use of certain recovery scenarios and the loss severity distributions.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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