Article 4
Qualitative conditions
Competent authorities may only grant the data waiver permission to an institution that provides well-documented evidence that all the following conditions are met in respect of every type of exposure:
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(a) |
longer time series data are unavailable or unsuitable due to lack of accuracy, completeness or appropriateness; |
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(b) |
an appropriate margin of conservatism is applied, in accordance with point (a) of Article 179(1) of Regulation (EU) No 575/2013 to adequately compensate for the expected range of estimation errors arising from the use of shorter historic data series; |
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(c) |
the data input vetting process referred to in point (b) of Article 174 of Regulation (EU) No 575/2013 is enhanced for the shorter time series. |