appropriate adjustment
Defined in Article 5, Capital Requirements Regulation (CRR)
Definitions over time (1)
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09/07/2024 – today applies on 12/11/2026 Article 5, Capital Requirements Regulation (CRR) Scope: Part III Title II
For the purposes of Part Three, Title II, the following definitions shall apply:
‘appropriate adjustment’ means the impact on risk parameter estimates resulting from the application of methodologies within the estimation of risk parameters to correct the identified deficiencies in data and in estimation methods, and to account for changes to underwriting standards, risk appetite, collection and recovery policies and any other source of additional uncertainty, to the extent possible in order to avoid biases in risk parameter estimates;