Question
The control rule in place is incompatible with the EBA Filing Rules - section 2.18 on decimal precision requirements. Could these rules be amended?
Background on the question
Per the EBA Filing Rules (section 2.18), the system does not enforce a fixed threshold for control validation. Instead, tolerance is determined by the decimal precision parameter linked to the data. When control elements are calculated using the precise LGD values, the control passes validation.
Answer
This question has been rejected because the matter it refers to is the same ofQ&A 7859.