27. In order to calibrate downturn LGD based on the observed impact of a considered downturn period, institutions should carry out an analysis of the impact of this downturn period on the loss data related to the considered calibration segment.

(a) The analysis shall comprise at a minimum all of the following:

(i) evidence of elevated levels of realised LGDs, driven by the considered downturn period taking into account all of the following:

(1) the realised LGDs should be calculated as averages related to all defaults that occurred in a considered year and that have either reached their maximum time of recovery in accordance with paragraph 156 [EBA GL on PD and LGD estimation] or have been closed before;