EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation (CRR or EU Regulation No 575/2013). The Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Regulation 2016/1799 specifies, in its Annex III, the correspondence of the relevant credit assessments issued by an ECAI to the credit quality steps set out in CRR (mapping). Following the latest amendments, by the Implementing Regulation (EU) 2018/634, to Annex III to Regulation (EU) 2016/1799, the quantitative and qualitative factors underpinning the credit assessments of some mappings in Annex III to Regulation (EU) 2016/1799 have changed. In addition, some ECAIs have extended their credit assessments to new market segments, resulting in new rating scales and new credit rating types. It is, therefore, necessary to update the mappings of the ECAIs concerned.
Since the adoption of Regulation (EU) 2018/634, another credit rating agency has been registered in accordance with Credit Rating Agencies Regulation (No 1060/2009). The credit assessments applied by the newly registered ECAI are based on the same methodology as that applied by its parent company, a third-country ECAI for which a mapping had already been established in Annex III to Regulation (EU) 2016/1799. It is, therefore, appropriate in this specific case that the mapping for the newly registered ECAI mirrors the mapping established for that third-country ECAI. Therefore, Regulation (EU) 2016/1799 has been amended accordingly. Annex III to Regulation (EU) 2016/1799 has been replaced by the text set out in the Annex to Regulation (EU) 2019/2028.
Keywords: Europe, EU, Banking, Securities, Insurance, ECAI, Mapping, CRR, CRA Regulation, Credit Risk, Credit Assessment, Credit Quality Steps, EC
Previous ArticleFASB Issues Summary of Tentative Board Decisions at November Meeting
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.