+Article 181 2.

Article 181 2.

For retail exposures, institutions may do the following:

(a) 

derive LGD estimates from realised losses and appropriate estimates of PDs;

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(b) 

reflect future drawings either in their conversion factors or in their LGD estimates;

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(c) 

For purchased retail receivables use external and internal reference data to estimate LGDs.

For the purposes of the first subparagraph, point (b), where institutions include future additional drawings in their conversion factors, those should be taken into account in the LGD in both the numerator and the denominator. Where institutions do not include future additional drawings in their conversion factors, those should be taken into account in the LGD numerator only.

For retail exposures, estimates of LGD shall be based on data over a minimum of five years. Subject to the permission of the competent authorities, institutions may use, when they implement the IRB Approach, relevant data covering a period of two years. The period to be covered shall be increased by one year each year until relevant data cover at least five years.

1. Prezentare generală

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1.1 Referințe

1.2 Cerințe identificate

1.3 Standarde asociate

2. Cerințe identificate

Cerințe

3. Standarde asociate

Standarde