Question
Once applicable percentages in the range are specified by the local regulator, would it be applied: (1) at the beginning of the period; (2) at the end of the period or (3) on a straight-line basis throughout the 12 months period?
Background on the question
Impact on capital planning for issuers
Answer
Competent authorities may choose to apply the applicable percentages they have chosen stepwise from the beginning of the period (the percentage chosen would be applicable during 12 months) or on a straight line basis throughout the 12 month period.