Article 25
Simplified standardised methodology for the calculation of the economic value of equity and changes in the economic value of equity
1.
For the calculation of the economic value of equity and the changes in the economic value of equity under the simplified standardised methodology, institutions shall apply Articles 5 to 13, subject to the derogations set out in paragraphs 2 to 5 of this Article.
2.
In the baseline scenario, the following shall apply:
(a)
by way of derogation from Article 8(2) to (6), institutions shall set the amount of the core component of non-maturity deposits taking the following proportions:
(i)
69,23 %, for the retail transactional non-maturity deposits referred to in Article 8(1), point (a)(i);
(ii)
53,85 %, for the retail non-transactional non-maturity deposits referred to in Article 8(1), point (a)(ii);
(iii)
38,46 %, for the wholesale non-financial non-maturity deposits referred to in Article 8(1), point (b)(ii);
(b)
by way of derogation from Article 8(9), institutions shall allocate the core component of non-maturity deposits evenly over time as set out in point 5(a) of the Annex.
3.
In scenarios prescribing a decrease of short-term interest rate, as referred to in Article 4, points (a)(ii), (b)(ii), and (c)(ii), the following shall apply:
(a)
by way of derogation from Article 8(2) to (6), institutions shall set the amount of the core component of non-maturity deposits taking the following proportions:
(i)
90 %, for the retail transactional non-maturity deposits referred to in Article 8(1), point (a)(i);
(ii)
70 %, for the retail non-transactional non-maturity deposits referred to in Article 8(1), point (a)(ii);
(iii)
50 %, for the wholesale non-financial non-maturity deposits referred to in Article 8(1), point (b)(ii);
(b)
by way of derogation from Article 8(9), institutions shall allocate the core component of non-maturity deposits evenly over time as set out in point 5(b) of the Annex.
4.
In scenarios prescribing an increase of short-term interest rate, as referred to in Article 4, points (a)(i), (b)(i), and (c)(i), the following shall apply:
(a)
by way of derogation from Article 8(2) to (6), institutions shall set the amount of the core component of non-maturity deposits taking the following proportions:
(i)
48,46 %, for the retail transactional non-maturity deposits referred to in Article 8(1), point (a)(i);
(ii)
37,69 %, for the retail non-transactional non-maturity deposits referred in Article 8(1), point (a)(ii);
(iii)
26,92 %, for the wholesale non-financial non-maturity deposits referred to in Article 8(1), point (b)(ii);
(b)
by way of derogation from Article 8(9), institutions shall allocate the core component of non-maturity deposits evenly over time as set out in point 5(c) of the Annex.
5.
Institutions shall calculate the change in value referred to in Article 13(2) and (3) as the difference between the sum of the pay-outs in the baseline scenario and the sum of the pay-outs in the applicable scenario, discounted by the applicable risk-free interest rates. Institutions shall disregard any effect of increased volatility and multiply the pay-outs of automatic options under the applicable scenario by 1,10.