EBA · 2019_4948 Rejected question

Notification to Competent Authority for the use of the adjustment referred to in Article 500 (1) CRR

Name: Notification to Competent Authority for the use of the adjustment referred to in Article 500 (1) CRR: EBA Q&A — EU Financial Regulatory Q&A
Creator: European Banking Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Regulation (EU) No 575/2013 (CRR)
Article: 500
Topic: Model validation
Submitted by: Individual
Submitted: 2019-10-16

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Question

Does an Institution that wants to apply the adjustment on its LGD estimates by partly or fully offsetting the effect of massive disposals of defaulted exposures on realised LGDs in line with Article 500 CRR have to notify the respective competent authority in accordance with Article 143 CRR?

Background

Since Article 500 CRR is not part of Part Three, Title II Chapter 3 CRR, it might not be clear if all requirements not explicitly derogated in Article 500 CRR apply in its use.

No answer published yet.

Original source: European Banking Authority, Q&A ID 2019_4948

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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