(fra kommisjonsforordningen)

(1) According to the Basel Committee on Banking Supervision standards for market risk, competent authorities may permit institutions in exceptional situations, not to comply with certain requirements of the alternative internal models approach in relation to the back-testing and the profit and loss attribution requirements. In line with the principle established by those standards, exceptional circumstances should only be deemed to be prevalent in a situation of significant cross-border financial market stress, or of a major regime shift, that materially affects institutions across the Union. 

(2) A further condition for extraordinary circumstances to be deemed to be prevalent should be that institutions are unable to meet the back-testing requirements set out in Article 325bf(3) of Regulation (EU) No 575/2013, or the profit and loss attribution requirement laid down in Article 325bg of that Regulation, because of events that are beyond their control and provided that the non-compliance with those requirements does not result from deficiencies in the internal model. 

(3) Both the back-testing and the profit and loss attribution test are to be based on data for the 250 business days preceding the reference date for which the respective test is performed. Extraordinary circumstances should thus be recognised where a period of significant cross-border financial market stress, or of a major regime shift, that materially affects institutions across the Union and produces exceptions that do not result from deficiencies in the internal model is fully or partially included in that 250 business days period. 

(4) The features of a crisis leading to significant cross-border financial market stress, or of a major regime shift, that materially affects institutions across the Union, are unique to every such crisis or regime shift. It would therefore not be appropriate to lay down in a prescriptive manner an exhaustive set of indicators that would be deemed to always adequately capture the nature and intensity of the financial market stress or major regime shift at hand. However, based on past experience, a significant increase of the level of volatility, changes in correlation levels, and the fact that the significant crossborder financial market stress or the major regime shift manifest themselves very quickly and suddenly should be considered common traits of non-ordinary situations. Still, a sudden increase of the level of volatility, or changes in volatility levels, on their own, may not be sufficient to characterise a situation as one of significant cross-border financial market stress or of a major regime shift and, therefore, should not automatically lead to the recognition of extraordinary circumstances as referred to in Article 325az(5) and Article 325bf(6) of Regulation (EU) No 575/2013. 

(5) This Regulation is based on the draft regulatory technical standards submitted to the Commission by the European Banking Authority. 

(6) The European Banking Authority has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council,