Commission Delegated Regulation (EU) 2015/63 of 21 October 2014 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to ex ante contributions to resolution financing arrangements (c. 63)

ANNEX I U.K. PROCEDURE FOR THE CALCULATION OF THE ANNUAL CONTRIBUTIONS OF INSTITUTIONS

STEP 5 Calculation of the Composite Indicator U.K.

1. The resolution authority shall aggregate the indicators i within each pillar j through a weighted arithmetic average by applying the following formula: U.K.

,

where:

• w_ij is the weight of indicator i in pillar j as defined by Article 7;

• N_j is the number of indicators within pillar j.

2. In order to compute the composite indicator, the resolution authority shall aggregate the pillars j through a weighted geometric average by applying the following formula: U.K.

,

where:

• W_j is the weight of pillar j as defined by Article 7;

• J is the number of pillars.

3. The resolution authority shall apply the following transformation in order for the final composite indicator to be defined as taking higher values for institutions with higher risk profiles: U.K.

.