131. Competent authorities should focus their assessment primarily on the most significant …

Competent authorities should focus their assessment primarily on the most significant identified sources of credit risk, evaluating their materiality for the institution from a prudential perspective. To conduct this assessment, they should consider the following elements:

• a. the credit risk strategy and appetite and relevant limits;
• b. the amount of exposure value for the considered portfolio, compared to the total exposure value of credit exposures, including its growth over time;
• c. the amount of own funds requirement for credit risk for the considered portfolio compared to the total own funds requirement, including its growth over time;
• d. where relevant, the internal capital allocated for credit risk for the considered portfolio by the institution compared to the total internal capital;
• e. the composition and quality of the institution’s on- and off-balance sheet credit-related items in the performing (including forborne exposure) and non-performing portfolio, including the level and change over time of impairments and write-offs and of the default rates of the credit portfolio.

1. Pregled

1.1 Sklici

1.2 Ugotovljene zahteve

1.3 Povezani standardi

2. Ugotovljene zahteve

3. Povezani standardi

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