Consequently, at the end of last year we provided institutions with application forms and guidance in order to apply for the use of an internal ratings approach. In the light of the large number of expected applications, it is of major importance to distribute the approval and examination work as evenly as possible during the time remaining until the EU directive gets into force.
Before a rating model is accepted for calculating regulatory capital it is subject to an on-site examination. That means, one examination at an applying bank will suffice only in the case of a smaller savings bank or credit co-operative, which use standard models developed by their associations.