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Investor Presentaiton

Back to Table of Contents Summary of Qualitative Requirements - Pillar III (Cross Referenced) Item # Pillar III - Requirements - Qualitative Frequency (g) Description of the main characteristics of the approved models: Annual 71-74 (i) definitions, methods and data for estimation and validation of PD (eg how PDs are estimated for low default portfolios; if there are regulatory floors; the drivers for differences observed between PD and actual default rates at least for the last three periods); and where applicable: (ii) LGD (eg methods to calculate downturn LGD; how LGDs are estimated for low default portfolio; the time lapse between the default event and the closure of the exposure); (iii) credit conversion factors, including assumptions employed in the derivation of these variables; 2022 Annual Report: MD&A Part 5 - CCRA: Qualitative disclosure related to counterparty credit risk Banks must provide: Annual Annual (a) The method used to assign the operating limits defined in terms of internal capital for counterparty credit exposures and for CCP exposures; Annual 73-74, 81- 175-176 (b) Policies relating to guarantees and other risk mitigants and assessments concerning counterparty risk, including exposures towards CCPS; Annual (c) Policies with respect to wrong-way risk exposures; (d) The impact in terms of the amount of collateral that the bank would be required to provide given a credit rating downgrade. Annual Annual 84 74-76, 81- 84 83-84 175-176 94 Part 6-SECA: Qualitative disclosure requirements related to securitization exposures Qualitative disclosures Banks must describe their risk management objectives and policies for securitization activities and main features of these activities according to the framework below. If a bank holds securitization positions reflected both in the regulatory banking book and in the regulatory trading book, the bank must describe each of the following points by distinguishing activities in each of the regulatory books. (a) The bank's objectives in relation to securitization and re-securitization activity, including the extent to which these activities transfer credit risk of the underlying securitized exposures away from the bank to other entities, the type of risks assumed and the types of risks retained. (b) The bank must provide a list of: special purpose entities (SPEs) where the bank acts as sponsor (but not as an originator such as an Asset Backed Commercial Paper (ABCP) conduit), indicating whether the bank consolidates the SPES into its scope of regulatory consolidation. A bank would generally be considered a "sponsor" if it, in fact or in substance, manages or advises the programme, places securities into the market, or provides liquidity and/or credit enhancements. The programme may include, for example, ABCP conduit programmes and structured investment vehicles. Scotiabank Supplementary Regulatory Capital Disclosure Annual Annual Annual Annual 67-69, 112 196-197 Annual Annual 67-69 196-197 Page 13 of 88 2022 Annual Report: Financial Statements Regulatory Capital Supplementary Package Page Reference 223-226 Financial Reporting Supplementary Package
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