Article 34 1

(a)

the institution has established, as part of the internal policies referred to in Article 325bi(1), point (e), of Regulation (EU) No 575/2013, criteria outlining:

(b)

the internal policies referred to in Article 325bi(1), point (e), of Regulation (EU) No 575/2013 cover all proxy approaches employed by the institution, including, where used:

(c)

for non-modellable risk factors, there is a clear rationale for using a proxy approach, even though the number of returns N in the time series for the risk factor resulting from Article 7 of Delegated Regulation (EU) 2024/397 would allow for using the historical method or the asymmetrical sigma method referred to, respectively, in Articles 8 and 9 of that Delegated Regulation;

(d)

the approach used to proxy the risk factor is appropriate and ensures, as required by Article 325bh(1), point (g), of Regulation (EU) No 575/2013, a conservative calibration of the scenarios of future shocks for modellable risk factors and of the extreme scenarios of future shock for non-modellable risk factors;

(e)

for risk factors for which proxy data are used only for specific periods in the time series, there are no anomalous jumps between the parts of the time series that are proxied and the parts of the time series that are not proxied.