Conditions for implementing the IRB Approach across different classes of exposure and business units
Subject to the prior permission of the competent authorities, implementation may be carried out sequentially across the different exposure classes referred to in Article 147 within the same business unit, across different business units in the same group or for the use of own estimates of LGDs or conversion factors for the calculation of risk weights for exposures to corporates, institutions, and central governments and central banks.
In the case of the retail exposure class referred to in Article 147(5), implementation may be carried out sequentially across the categories of exposures to which the different correlations in Article 154 correspond.
that have begun to use the IRB Approach only after 1 January 2013 or that have until that date been required by the competent authorities
to be able to calculate their capital requirements using the Standardised Approach shall retain their ability to calculate capital requirements using the Standardised Approach for all their exposures
during the implementation period until the competent authorities
notify them that they are satisfied that the implementation of the IRB Approach will be completed with reasonable certainty.
that is permitted to use the IRB Approach for any exposure
class shall use the IRB Approach for the equity exposure
class laid down in point (e) of Article 147(2), except where that institution
is permitted to apply the Standardised Approach for equity exposures
pursuant to Article 150 and for the other non credit-obligation assets exposure
class laid down in point (g) of Article 147(2).
EBA shall develop draft regulatory technical standards to specify the conditions according to which competent authorities
shall determine the appropriate nature and timing of the sequential roll out of the IRB Approach across exposure
classes referred to in paragraph 3.
EBA shall submit those draft regulatory technical standards to the Commission by 31 December 2014.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.