4.4 Completeness of the data inputs

Institutions should have procedures in place for obtaining historical data to calibrate data inputs as referred to in Article 325bc of Regulation (EU) No 575/2013 from alternative data sources in a timely manner, in case historical data provided by their normally used data sources are not available.

Institutions should have clear policies and processes for the replacement of missing or inconsistent values in the time series of historical data and data inputs referred to in Article 325bc of Regulation (EU) No 575/2013, including policies for verifying that such replacement of missing or inconsistent values is compatible with the requirements in paragraphs 13 to 16, 21 and 22.

Institutions should ensure that data is not filtered and that values corresponding to large changes are not excluded from the time series of historical data and data inputs referred to in Article 325bc of Regulation (EU) No 575/2013, unless the filtered data or excluded values correspond to erroneous or inconsistent data or values.

Where interpolated or extrapolated values are used as replacements for missing or inconsistent values in the data inputs referred to in Article 325bc of Regulation (EU) No 575/2013 for a risk factor, the interpolated or extrapolated values should appropriately represent the missing values regardless of the interpolation or extrapolation methodology used.

Where interpolated or extrapolated values, based on data inputs corresponding to other risk factors that may or may not be incorporated in the institution’s internal model, ar e used as replacements for missing or inconsistent values in the data inputs referred to in Article 325bc of Regulation (EU) No 575/2013 for a risk factor, those interpolated or extrapolated values should be based on data inputs corresponding to risk factors that have passed or would pass the modellability assessment referred to in Article 325be of that Regulation.

Where extrapolated values, based on data inputs corresponding to other risk factors that may or may not be incorporated in the institution’s int ernal model, are used as replacements for missing or inconsistent values in the data inputs referred to in Article 325bc of Regulation (EU) No 575/2013 for a risk factor, those extrapolated values should be based on data inputs that meet the conditions set out in points (a) to (c) of paragraph 28.