1.Institutions whose internal methodology, or a part of it, meets the conditions set out in Article 1(2) or Article 3(2), shall, in relation to all the issuers and positions covered under those Articles, document all of the following:
(a)that no external sources fulfilling the requirements set out in Article 2 or in Article 4, as applicable, are available for estimating default probabilities for those issuers and losses given default for those positions, respectively;
(b)that the use of an internal methodology fulfilling the requirements set out in Article 1(1) for estimating default probabilities for those issuers, or in Article 3(1) for estimating losses given default for those positions, respectively, would not be feasible due to a lack of input data, or that it would be disproportionate in relation to the materiality or the holding period in line with the trading strategy adopted for those issuers or positions;
(c)the values of ‘m’, calculated in accordance with the formulae laid down in Article 1(5) and Article 3(5).