Recital 1

(1)The annual fee referred to in Article 11(12a), fifth subparagraph, of Regulation (EU) No 648/2012 should be sufficiently high to cover all direct and indirect costs incurred by the European Banking Authority (‘EBA’) for validating the pro forma models referred to in Article 11(3), fourth subparagraph, of that Regulation. All the fees charged should be set at a level such as to avoid a deficit or a significant accumulation of surplus. Where a significant positive or negative budget result becomes recurrent, the level of the fees should be revised.