351. Where setting the P2G and P2G-LR, competent authorities should ensure an adequate link between …

Where setting the P2G and P2G-LR, competent authorities should ensure an adequate link between their respective starting points as well as their final values. For this purpose, they may decide to use a bucketing approach to classify institutions in accordance with P2G and P2G-LR starting points, based on the relevant supervisory stress tests set out in paragraph 344 or based on other approaches set out in paragraph 345. Consequently, competent authorities may assign a fixed range of P2G or P2G-LR levels to each bucket and set the final P2G and P2G-LR within the range of the assigned bucket or, exceptionally, outside the range of the relevant bucket, based on the institution-specific considerations. Competent authorities should aim to avoid cliff effects between buckets, for instance by allowing partial overlap between the P2G or P2G-LR levels for adjacent buckets, and they should ensure that the resulting final P2G and P2G-LR are institution-specific.

1. Ħarsa ġenerali

1.1 Referenzi

1.2 Rekwiżiti identifikati

1.3 Standards relatati

2. Rekwiżiti identifikati

3. Standards relatati

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