Recital 1

(1)Pursuant to Article 258(1) of Regulation (EU) No 575/2013 juncto Article 143(1) of that Regulation, institutions may calculate their risk-weighted exposure amounts in relation to a securitisation position using the Internal Ratings Based Approach (‘SEC-IRBA’). Pursuant to Article 143(2) of Regulation (EU) No 575/2013, prior permission to use the Internal Ratings Based Approach (‘IRB approach’), including own estimates of Loss Given Default (‘LGD’) and conversion factors, shall be required for each exposure class and for each rating system and for each approach to estimating LGDs and conversion factors used.