((a))following the reversal to the use of less sophisticated approaches, the supervised entity’s own funds are estimated to continue exceeding the sum of the requirements laid down in Article 92(1)(a) to (c) of Regulation (EU) No 575/2013, the own funds required to be held in accordance with Article 16(2)(a) of Regulation (EU) No 1024/2013, the combined buffer requirement as defined in point (6) of Article 128 of Directive 2013/36/EU and the Pillar 2 capital guidance as set out in the last available SREP decision and the CET1 ratio does not decrease by more than 50 basis points and the resulting margin on overall capital requirements and Pillar 2 capital guidance as set out in the last available SREP decision is not smaller than 50 basis points in terms of CET1 ratio on a consolidated level of a significant supervised group or on an individual level of a significant supervised entity, if such significant supervised entity is not part of a significant supervised group;
1. 1. Decisions granting permission to revert to the use of less sophisticated approaches shall be taken by means of a delegated decision if all of the following criteria are met:
(a)as a result of the reversion to the use of less sophisticated approaches, there are no changes to the criteria applied by the significant supervised group or significant supervised entity to determine whether or not to revert to the use of less sophisticated approaches pursuant to Article 149 of Regulation (EU) No 575/2013, as reflected in the internal policies or arrangements of that group or entity as communicated to the ECB, and there is no breach of any requirement, obligation or limitation set out in previous ECB decisions approving return-to-compliance plans pursuant to Article 146 of Regulation (EU) No 575/2013 or pursuant to Article 101(4) of Directive 2013/36/EU and IRB roll-out plans pursuant to Article 148 of Regulation (EU) No 575/2013;
(b)((b)) followingas a result of the reversalreversion to the use of less sophisticated approaches, the ownCommon fundsEquity requirementsTier are1 capital ratio does not reducedincrease or decrease by more than 50 basis points, measured separately for any individual type of exposure or rating system within the scope of the application to revert to the use of less sophisticated approaches, on a consolidated level of a significant supervised group or on an individual level of a significant supervised entity, ifwhere such significant supervised entity is not part of a significant supervised group.
2. 2. Where athe requestapplication to revert to the use of the use of less sophisticated approaches concerns more than one rating system, the decision shall be taken by means of a delegated decision if all the criteria set out in paragraph 1 are met with regard to each rating system in the scope of the decision.
3. 3. The assessment concerning the reversalreversion to less sophisticated approaches shall be carried out in accordance with Article 149 of Regulation (EU) No 575/2013 and implementing and regulatory technical standards adopted by the European Commission, also taking into consideration any applicable ECB guides or similar documents issued by the ECB, as well as Guidelines and final draft regulatory technical standards of the European Supervisory Authorities.