Article 182 › 3

For retail exposures, institutions may reflect future drawings either in their conversion factors or in their LGD estimates. For retail exposures, estimates of conversion factors shall be based on data over a minimum of five years. By way of derogation from point (a) of paragraph 1, an institution need not give equal importance to historic data if more recent data is a better predictor of draw downs. Subject to the permission of competent authorities, institutions may use, when they implement the IRB Approach, relevant data covering a period of two years. The period to be covered shall increase by one year each year until relevant data cover a period of five years.

← 2 · All articles · 4 →

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