Article 67
General
1. In order to assess whether an institution calculates the own funds requirements using its risk parameters for different exposure classes in accordance with Article 110(2) and (3), point (g) of Article 144(1) and Articles 151 to 168 of Regulation (EU) No 575/2013 and is able to carry out the reporting required by Article 430 of Regulation (EU) No 575/2013, competent authorities shall verify all of the following:
|
(a) |
the reliability of the system used for the calculation of own funds requirements, in accordance with Article 68; |
|
(b) |
the data quality, in accordance with Article 69; |
|
(c) |
the correctness of the implementation of the methodology and procedures for different exposure classes, in accordance with Article 70; |
|
(d) |
the organisation of the process for the calculation of own funds requirements, in accordance with Article 71. |
2. As regards groups, competent authorities shall for the purpose of the assessment under paragraph 1 take into consideration the structure of the banking group and the established roles and responsibilities of the parent institution and its subsidiaries.
3. For the purposes of the verification under paragraphs 1 and 2, competent authorities shall apply all of the following methods:
|
(a) |
review the institution’s internal policies and procedures with regard to the process of calculation of own funds requirements, including the sources of data, calculation methods and controls applied; |
|
(b) |
review the relevant roles and responsibilities of the different units and internal bodies involved in the process of calculation of own funds requirements; |
|
(c) |
review the relevant minutes of the institution’s internal bodies, including the management body, or committees; |
|
(d) |
review the documentation of the tests of the calculation system, including the scenarios covered in the tests, their results and approvals; |
|
(e) |
review the relevant control reports, including the results of reconciliation of data stemming from different sources; |
|
(f) |
review the relevant findings of the internal audit or of other control functions of the institution; |
|
(g) |
review the progress reports on the efforts made by the institution to correct shortcomings and mitigate risks detected during relevant audits; |
|
(h) |
obtain written statements from or interview the relevant staff and senior management of the institution. |
4. For the purpose of the assessment under paragraphs 1 and 2, competent authorities may also apply any of the following additional methods:
|
(a) |
review the functional documentation of the IT systems used for the calculation of own funds requirements; |
|
(b) |
request the institution to perform a live computation of the own funds requirements for certain types of exposures; |
|
(c) |
perform own sample testing of the calculation of own funds requirements on institution’s data for certain types of exposures; |
|
(d) |
perform own tests on the data of the institution or request the institution to perform tests proposed by the competent authorities; |
|
(e) |
review other relevant documents of the institution. |