106. In assessing the implications of optionality, institutions should take into account: (a) The …

In assessing the implications of optionality, institutions should take into account:

• (a) The potential impact on current and future loan prepayment speeds arising from the interest rate scenario, underlying economic environment and contractual features. Institutions should take into account the various dimensions influencing the embedded behavioural options.
• (b) The elasticity of adjustment of product rates to changes in market interest rates.
• (c) The migration of balances between product types as a result of changes in their features, terms and conditions.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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