Contents
Article 4Requirements for external sources for estimating losses given default#
1.When using external sources for estimating losses given default in accordance with Article 325bp(6), point (d), of Regulation (EU) No 575/2013, institutions shall, in accordance with Articles 325bj(2) and 325bp(7) of that Regulation, validate the estimates of losses given default on a periodic basis for their use in the internal default risk model.
2.Institutions that use more than one external source shall establish a hierarchy of those external sources.
Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.