ECB publishes update on TRIM
On 5 April 2019, the European Central Bank (ECB) published a note providing an interim update on the targeted review of internal models (TRIM). The purpose of the note is to provide an overview of the TRIM project and to share aggregated information on its outcomes. The note complements the first update on TRIM outcomes published on 11 June 2018.
TRIM aims to assess whether the internal models currently used by significant institutions in the SSM comply with regulatory requirements, and whether their results are reliable and comparable.
This article provides a summary of the most common or critical shortcomings identified in TRIM for general topics, for credit risk (for retail and SME portfolios) and for market risk.