83. For the purpose of assessing the representativeness of the historical observation period …

For the purpose of assessing the representativeness of the historical observation period referred to in paragraph 82 for the likely range of variability of one-year-default rates, institutions should assess whether the historical observation period contains a representative mix of good and bad years, and they should take into account all of the following:

• (a) the variability of all observed one-year-default rates;
• (b) the existence, lack or prevalence of one-year default rates relating to bad years as reflected by economic indicators that are relevant for the considered type of exposures within the historical observation period;
• (c) significant changes in the economic, legal or business environment within the historical observation period.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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