Examples of using Internal models in English and their translations into Romanian
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Official
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Medicine
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Ecclesiastic
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Ecclesiastic
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Computer
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Programming
What is the targeted review of internal models?
Targeted Review of Internal Models ECB Banking Supervision.
Internal models based capital requirements for market risks.
Solvency capital requirement full and partial internal models SECTION 5.
Over 2007-2008, it became clear that internal models systematically underestimated the potential loss in stressed conditions.
Accordingly, this directive will strengthen the capital requirements based on internal models in several respects.
The multi-annual targeted review of internal models(TRIM) project continues in 2018 with the budget remaining stable as compared with 2017.
There is a need to increase accountability andthe powers for monitoring the internal models and imposing preventive measures.
Institutions using internal models which are not recognised in accordance with point 5 shall be subject to a separate capital charge for specific risk as calculated in accordance with Annex I.
Insurance and reinsurance undertakings may use partial internal models for the calculation of one or more of the following.
The amendment reflects recent changes made to the supervisory reporting framework, following the adoption of Commission Implementing Regulation(EU) 2016/2070,with regard to benchmarking institutions' internal models.
For example, insurance groups are to be allowed recourse to internal models of risk assessment when calculating capital and solvency requirements.
Institutions shall have robust systems in place to validate the accuracy and consistency of their internal models and modelling processes.
As part of the independent review and validation of their internal models used for purposes of this Chapter, an institution shall in particular do all of the following.
Auditors could disclose which components were directly verified andwhich were verified on the basis of professional judgement, internal models, hypotheses and management explanations.
Where institutions are using the Internal Models Approach defined in Part 3 of Annex VIII to Directive 2006/48/EC, they may also apply this approach in the trading book.
(b) practices in centralised group risk management andfunctioning of group internal models including stress testing;
EBA shall monitor the range of practices concerning internal models not complying with all requirements of Articles 363, 364 and 365 and shall, in accordance with Article 16 of Regulation(EU) No. 1093/2010, issue guidelines on those practices.
This will make it possible to timely start the supervisory approval procedures e g for internal models and undertaking specific parameters.
To address doubts about the ability of internal models to adequately capture the particular risk profile of securitisation positions, institutions will be required to assess a separate standardised capital charge for the risks of securitisation positions in the trading book.
The increase in 2017 relates predominantly to work associated with the targeted review of internal models(TRIM) and an increase in the number of ECB staff working in banking supervision.
The bank shall have management processes able to secure that all transactions are registered in due time and that market positions are re-assessed sufficiently frequent, using credible market information or,in the absence of market prices, internal models or models accepted in the banking sector.
In order to provide policy holders andbeneficiaries with an equivalent level of protection, such internal models should be subject to prior supervisory approval on the basis of harmonised processes and standards.
The higher staff numbers also drove the increase in premises-related costs, while the decrease in other operating expenditure was mainly due to lower consultancy expenses inrelation to supervisory tasks, most notably the Targeted Review of Internal Models(TRIM), which will conclude in 2020.
(d) the institution shall have sufficient numbers of staff skilled in the use of sophisticated internal models, and including the ones used for purposes of this Chapter, in the trading, risk-control, audit and back-office areas;
I see the need to increase supervisors' responsibilities, capacity, powers and resources for monitoring, assessing andoverseeing the adequacy of the internal models and for imposing prudential measures.
The Commission shall, in order to ensure a harmonised approach to the use of internal models throughout the Community and to enhance the better assessment of the risk profile and management of the business of insurance and reinsurance undertakings, adopt implementing measures with respect to Articles 120 to 126.
In accordance with the risk-oriented approach to the Solvency Capital Requirement, it should be possible, in specific circumstances,to use partial or full internal models for the calculation of that requirement rather than the standard formula.
Institutions shall have processes in place to ensure that all their internal models used for purposes of this Chapter have been adequately validated by suitably qualified parties independent of the development process to ensure that they are conceptually sound and adequately capture all material risks.
Furthermore, there is a need to increase supervisors' responsibilities, capacity, powers and resources for monitoring, assessing andoverseeing the adequacy of the internal models, for imposing prudential measures and conducting investigations and inspections.