Permission to use the IRB Approach
Where the conditions set out in this Chapter are met, the competent authority
shall permit institutions
to calculate their risk-weighted exposure
amounts using the Internal Ratings Based Approach (hereinafter referred to as ‘IRB Approach’).
The range of application of a rating system shall comprise all exposures of the relevant type of exposure for which that rating system was developed.
EBA shall develop draft regulatory technical standards to specify the conditions for assessing the materiality of the use of an existing rating system
for other additional exposures
not already covered by that rating system
and changes to rating systems
or internal models approaches to equity exposures
under the IRB Approach.
EBA shall submit those draft regulatory technical standards to the Commission by 31 December 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.