Own estimates of CCF in the retail exposure class

In accordance with Article 151(7) of Regulation (EU) No 575/2013 (CRR), for exposures belonging to the retail exposure class institutions applying the IRB approach shall use own estimates of conversion factors. As clarified in Q&A 1263 , the treatment of off balance sheet items other than those mentioned in paragraphs (1) to (8) of Article 166 of Regulation (EU) No 575/2013 (CRR) is specified in Article 166(10). Consequently, for off-balance sheet items the use of own estimates of conversion factors is limited to the product types mentioned in Article 166(8)(a) - (d) CRR. The requirement to use own estimates of conversion factors for retail exposures implies that the conversion factors set out in points (a) to (d) of Article 166(8) CRR can be used only for the exposure classes 'central government and central banks', 'institutions', and 'corporates'. However, while the retail exposure class is also in the scope of Article 166(8) CRR - to the extent that the first sentence of paragraph (8) refers to own estimates of conversion factors - their use is subsequently limited according to paragraph (10), which refers to items and not to exposure classes. In case an exposure simultaneously takes the form of a credit line according to Article 166(8) CRR and a credit facility according to Annex I CRR, this exposure does not fall within the scope of Article 166(10) CRR, because it constitutes a product type mentioned in Article 166(8) CRR.