1.   For the model development, for the quantification of risk parameters, for the application of the internal model for calculating KIRB, and for the completion of the data referred to in Article 13(2), institutions calculating KIRB may use any relevant data other than the data referred to in that Article as proxy data.

2.   The proxy data referred to in paragraph 1 can be internal, external, or pooled data in the sense used in Part Three, Title II, Chapter 3, Section 6, of Regulation (EU) No 575/2013.

3.   When institutions calculating KIRB make use of proxy data in the course of the estimation of risk parameters, the requirements of Article 179(1), point (f), of Regulation (EU) No 575/2013 on conservatism shall also apply when institutions use proxy data for the model development, the quantification of risk parameters, and the application of the internal model for calculating KIRB.

4.   Institutions calculating KIRB that use proxy data shall assess the representativeness of those proxy data with regard to the data referred to in Article 13(2) and make the necessary adjustments to the proxy data to align the quality of those data to the quality of the data referred to in that Article 13(2).

5.   Where it is not possible to overcome the difference in quality by adjustments in the proxy data, institutions calculating KIRB shall adopt an appropriate margin of conservatism in the estimation of risk parameters in accordance with Article 179(1), point (f), of Regulation (EU) No 575/2013.

6.   Institutions calculating KIRB may, for the model development, the quantification of risk parameters, and the application of the internal model for calculating KIRB, use the data on static and dynamic historical default and loss performance made available by originators and sponsors in accordance with Article 22, Article 24(14) and Article 26d(1) of Regulation (EU) 2017/2402, irrespective of whether those data meet the requirements for simple, transparent and standardised securitisations laid down in that Regulation.