196. For the purpose of paragraph 195(a) institutions should have a robust process for identifying …

For the purpose of paragraph 195(a) institutions should have a robust process for identifying all implementation and application deficiencies in the assignment process, whereby each deficiency leads to additional conservative treatment in the affected assignment to a grade or pool. Institutions should consider at least the following triggers for additional conservatism:

• (a) missing data in the application portfolio;
• (b) missing updates of financial statements or credit bureau data as referred to in paragraph 59(h);
• (c) outdated ratings in the application portfolio; where outdated rating should be understood as specified in Article 25(2)(b) of the RTS on IRB methodology;
• (d) missing ratings, whereby an exposure is considered as being within the scope of application of the IRB model but is not rated by it.

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/