I have already said that we are targeting small institutions, meaning that the targeted group should consist of institutions with a moderate amount of total assets. However, what qualifies as a “moderate amount” is different in each of the member states of the European Union.
To account for this heterogeneity, we will probably combine an absolute threshold for total assets with a relative one that takes the size of the national GDP into account. This quantitative threshold should be supplemented by additional criteria that prevent institutions with riskier business models from benefiting from simplified rules. For example, banks that qualify must not use internal models.