X1PART THREECAPITAL REQUIREMENTS

TITLE IICAPITAL REQUIREMENTS FOR CREDIT RISK

CHAPTER 3Internal Ratings Based Approach

Section 1Permission by competent authorities to use the IRB approach

Article 146Measures to be taken where the requirements of this Chapter cease to be met

Where an institution ceases to comply with the requirements laid down in this Chapter, it shall notify the competent authority and do one of the following:

  1. (a)

    present to the satisfaction of the competent authority a plan for a timely return to compliance and realise this plan within a period agreed with the competent authority;

  2. (b)

    demonstrate to the satisfaction of the competent authorities that the effect of non-compliance is immaterial.