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3. ALTERNATIVE INDICATORS FOR CERTAIN BUSINESS LINES

Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (Text with EEA relevance) · European Union

The competent authorities may authorise the credit institution to use an alternative relevant indicator for the business lines: retail banking and commercial banking. For these business lines, the relevant indicator shall be a normalised income indicator equal to the three-year average of the total nominal amount of loans and advances multiplied by 0,035. For the retail and/or commercial banking business lines, the loans and advances shall consist of the total drawn amounts in the corresponding credit portfolios. For the commercial banking business line, securities held in the non trading book shall also be included. The authorisation to use alternative relevant indicators shall be subject to the conditions in points 9 to 11. The credit institution meets the qualifying criteria set out in point 12. The credit institution is overwhelmingly active in retail and/or commercial banking activities, which shall account for at least 90 % of its income. The credit institution is able to demonstrate to the competent authorities that a significant proportion of its retail and/or commercial banking activities comprise loans associated with a high PD, and that the alternative standardised approach provides an improved basis for assessing the operational risk.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-09 · Text as adopted (Official Journal); later amendments are not incorporated in this text.