87. Based on the assessment of the viability and sustainability of the business model, competent authorities should form an overall view on the business model viability and strategy sustainability, and any potential risks to the viability of an institution stemming from this assessment. This view should be reflected in a summary of findings, accompanied by a viability score based on the considerations specified in Table 2.
Table 2. Supervisory considerations for assigning a business model and strategy score
|
Score |
Supervisory view |
Considerations |
|---|---|---|
|
1 |
The business model and strategy pose low level of risk to the viability of the institution. - The institution generates strong and stable returns which are acceptable given its risk appetite and funding structure. - There are no material asset concentrations or unsustainable concentrated sources of income. - The institution has a strong competitive position in its chosen markets and a strategy likely to reinforce this. - The inst |