Article 319
Alternative Standardised Approach
1.
Under the Alternative Standardised Approach, for the business lines ‘retail banking’ and ‘commercial banking’, institutions shall apply the following:
(a)
the relevant indicator is a normalised income indicator equal to the nominal amount of loans and advances multiplied by 0,035;
(b)
the loans and advances consist of the total drawn amounts in the corresponding credit portfolios. For the ‘commercial banking’ business line, institutions shall also include securities held in the non trading book in the nominal amount of loans and advances.
2.
To be permitted to use the Alternative Standardised Approach, an institution shall meet all the following conditions:
(a)
its retail or commercial banking activities shall account for at least 90 % of its income;
(b)
a significant proportion of its retail or commercial banking activities shall comprise loans associated with a high PD;
(c)
the Alternative Standardised Approach provides an appropriate basis for calculating its own funds requirement for operational risk.