ACPR published a notice on the implementation of EBA guidelines on loan origination and monitoring (EBA/GL/2020/06). The notice highlights that ACPR complies with the EBA guidelines with the exception of the provisions of paragraphs 90 and 247 of the guidelines related to the single customer view. ACPR will apply these guidelines as of June 30, 2022. Paragraph 90 of the EBA guidelines states that institutions and creditors should have an accurate single customer view that enables an assessment of the borrower’s ability to service and repay financial commitments. Paragraph 247 states that institutions should ensure that the credit risk monitoring framework and data infrastructure also enable a single customer view.
In May 2020, EBA had published the guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations. The guidelines contain EBA expectations for improved creditworthiness assessments, with the expectations being applicable to all banks—including those offering loans to consumers, small and medium-size enterprises (SMEs), and corporates—and to other creditors offering loans to consumers.
Keywords: Europe, France, Banking, Credit Risk, NPLs, Loan Origination, ESG, Single Customer View, EBA, ACPR
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