Article 78 › 3

Competent authorities shall, on the basis of the information submitted by institutions in accordance with paragraph 1, monitor the range of risk weighted exposure amounts or own funds requirements, as applicable, except for operational risk, for the exposures or transactions in the benchmark portfolio resulting from the internal approaches of those institutions. At least annually, competent authorities shall make an assessment of the quality of those approaches paying particular attention to: (a) those approaches that exhibit significant differences in own fund requirements for the same exposure; (b) approaches where there is particularly high or low diversity, and also where there is a significant and systematic under-estimation of own funds requirements. EBA shall produce a report to assist the competent authorities in the assessment of the quality of the internal approaches based on the information referred to in paragraph 2.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04