193. Irrespective of which of the two approaches referred to in points (a) and (b) of Article …

Irrespective of which of the two approaches referred to in points (a) and (b) of Article 54(1)(a) of the RTS on IRB assessment methodology is used for the purposes of estimating LGD in-default institutions should document separately all of the following:

• (a) the break-down of the LGD in-default into its components: the EL BE and the add-on;
• (b) the break-down of the add-on into all of the following components:
• (i) the downturn conditions component calibrated on the downturn adjustment to the long-run average LGD as specified in paragraph 189;
• (ii) the MoC component, referred to in section 4.4;
• (iii) any component covering for potential additional unexpected losses during the recovery period referred to in Article 181 (1)(h) of Regulation (EU) No 575/2013; this component should only be included in exceptional circumstances where the potential additional losses are not sufficiently reflected in the components referred to in points
• (i) and (ii).

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/