22. For the purpose of calibrating downturn LGD for each considered downturn period identified in accordance with Regulation (EU) xx/xx [RTS on economic downturn], institutions should use one of the three types of approaches set out in Section 5, Section 6 and Section 7 of these guidelines in accordance with the hierarchy set out in paragraphs 23 to 25 below.

23. Where institutions have sufficient and relevant loss data to conduct the impact analysis set out in paragraph 27, they should calibrate downturn LGD for the considered downturn period in accordance with Section 5 of these guidelines. For this purpose, institutions should ensure that the relevant loss data is available during the considered downturn period as well as during an appropriate period before and after the considered downturn period.