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Recital 4

Recital 4

(4)To facilitate the implementation of the standardised methodology by institutions and having regard to the fact that both the economic value of equity and the net interest income estimations should be based on repricing cash flows, the approaches for the estimation of those two metrics should be based on the same rules regarding slotting in time buckets. However, to calculate correctly the contribution of the projected risk free interest rate to the reinvestment or refinancing of repricing cash flows, the net interest income metric requires additional slotting of cash flows into the reference term time bucket.

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