Question
C 02.00 – Row 690/ Col 0020 (Other RWA under S-TREA): If the firm were back testing any models that identified a shortfall, would this necessarily result in the equivalent Fully Standardised RWA needing to be computed, given that the fully standardised position would be driven by rule-based criteria, so in essence captured in the appropriate rows before Row 690 (risk types) already? In addition, for any regulator driven add-ons, again assume the same would be applied.
Background on the question
Treatment of S-TREA (Col 0020) under Other RWA (Row 690) driven by firm backtesting or competent authority (regulator) requirement.
Answer
In template C 02.00 of Implementing technical standard (EU) 2024/3117 (ITS on reporting), there will be no impact on S-TREA (c0020, r0690) for additional RWA due to PMA / model shortfall; as well as competent authority (regulator) driven add ons.