In its commentary to the articles of Title VIII of the CBFA Regulation on own funds as approved by Ministerial Decree (17 October 2006), the CBFA has provided detailed information on the qualitative and quantitative conditions that have to be met by an IRB applicant. This commentary has been published by circular letter Circular on Own Funds PPB-2007-CPB.
The CBFA’s commentary includes references to its above mentioned uniform letter of 24 October 2005, and to its uniform letter of 15 February 2006 relating to the so-called parallel run calculations to be performed during the year before implementation.
The CBFA’s assessment of an IRB application is intended to cover the full spectrum of the qualitative and quantitative conditions to be met following the regulatory text and its commentary. Well documented validations and self assessments performed by the institution itself are expected to offer substantial support the CBFA’s assessment efforts. On site inspections and discussions with the institutions will complement the information gathered through the application files.
As far as the assessment of IRB applications in a group context is concerned, the CBFA intends to perform its role as a home or host supervisor in accordance with the related rules and guidelines agreed at the international level.