April 25, 2018

EC published, in the Official Journal of European Union, the amended level 2 measures regarding credit risk assessments of external credit assessment institutions (ECAIs) under the Capital Requirements Regulation (CRR or EU Regulation No 575/2013) and the Solvency II Directive. Both the Commission Implementing Regulations (EU) 2018/634 and (EU) 2018/633 shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union.

The Commission Implementing Regulation (EU) 2018/633 is amending the Implementing Regulation (EU) 2016/1799 regarding the mapping tables specifying the correspondence between the credit risk assessments of ECAIs and the credit quality steps set out in CRR. Since the adoption of Implementing Regulation (EU) 2016/1799, additional credit rating agencies (CRAs) have been registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council. Furthermore, one of the ECAIs for which Implementing Regulation (EU) 2016/1799 provided a mapping has been de-registered. Given that Article 136(1) of CRR requires the specification of mappings for all ECAIs, it is necessary to amend Implementing Regulation (EU) 2016/1799 to provide mappings for the newly registered or certified ECAIs, and to remove the mapping for the de-registered ECAI. Therefore, Annex III to the Implementing Regulation (EU) 2016/1799 is being replaced by the text set out in the Annex to CIR 2018/634.

The Commission Implementing Regulation (EU) 2018/633 is amending the Implementing Regulation (EU) 2016/1800, which lays down implementing technical standards on the allocation of credit assessments of ECAIs to an objective scale of credit quality steps, in accordance with the Solvency II Directive (2009/138/EC). After the adoption of Regulation (EU) 2016/1800, five new ECAIs have been registered or certified. It is, therefore, necessary to amend the Annex to that Implementing Regulation to allocate the credit assessments of those newly registered or certified ECAIs to the objective scale of credit quality steps. The registration of one external credit assessment institution has been withdrawn since the adoption of Implementing Regulation (EU) 2016/1800. That de-registered institution should, therefore, be removed from the Annex to that Implementing Regulation. Therefore, Annex to the Implementing Regulation (EU) 2016/1800 is being replaced by the text in the Annex to Implementing Regulation (EU) 2018/633.

 

Related Links

Effective Date: May 15, 2018

Keywords: Europe, EU, Banking, Insurance, CRR, Solvency II, ECAIs, CRA, Credit Risk, EC

Related Articles
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
News

US Agencies Delay Enforcing Volcker Rule Restrictions on Foreign Funds

US Agencies (FDIC, FED, and OCC) announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years.

July 17, 2019 WebPage Regulatory News
News

SRB Announces SRF Receives Cash Injection, Grows to EUR 33 billion

SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion.

July 17, 2019 WebPage Regulatory News
News

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

July 17, 2019 WebPage Regulatory News
News

IMF Publishes Report on 2019 Article IV Consultation with Vietnam

IMF published its staff report in context of the 2019 Article IV consultation with Vietnam.

July 16, 2019 WebPage Regulatory News
News

European Parliament Elects Next President of European Commission

European Parliament elected Ursula von der Leyen from Germany as the first female President of the next European Commission for a five-year term from November 01, 2019.

July 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3476