EBA responded to the EC consultation on the proposed new consumer agenda to express support for harmonization of the creditworthiness assessment process for consumer lending across EU; this includes the introduction of standards for the data and creditworthiness assessment process. The EBA response focuses on the revision of the Consumer Credit Directive (CCD or Directive 2008/48/EC) and builds on the recent EBA guidelines on loan origination and monitoring.
In its response, EBA calls for the introduction of binding principles on responsible lending such as an obligation to take into account target consumer interests, objectives, and characteristics when designing credit products. The response aims at reinforcing the requirements, for assessing the creditworthiness of borrowers, that are set out in the guideless and, thus, contributing to the EC’s planned changes to the CCD. In June 2020, EC had consulted on the new consumer agenda that, among other topics, contained a number of questions regarding the CCD. The questions also contained a series of proposals regarding the harmonization of the creditworthiness assessment of a borrower, which is a topic that EBA has addressed in the guidelines on loan origination and monitoring (EBA/GL/2020/06).
Keywords: Europe, EU, Banking, Credit Assessment, Consumer Credit, Consumer Credit Directive, Loan Origination, Credit Risk, EBA, EC
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.