Featured Product

    ESAs Propose to Amend Technical Standards on the Mapping of ECAIs

    October 26, 2018

    ESAs proposed amendments to the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk. The Implementing Regulations are part of the EU Single Rulebook for banking and insurance. The consultation runs until December 31, 2018. ESAs also published individual draft mapping reports that illustrate how the methodology was applied to produce the amended mappings in line with the Capital Requirements Regulation (CRR) mandate. The draft mapping reports were published for nine credit rating agencies (CRAs), including Moody's, S&P, Fitch, and European Rating Agency.

    In the Implementing Regulations on the mapping of ECAIs, adopted by EC on October 11, 2016, the three ESAs specified an approach that establishes the correspondence between credit ratings and the credit quality steps defined in the CRR and in the Solvency II Directive. ESAs are consulting on an amendment to the Implementing Regulation to reflect the outcome of a monitoring exercise on the adequacy of the mappings, based on a quantitative and qualitative assessment. ESAs are proposing to change the Credit Quality Steps allocation for two ECAIs, along with the introduction of new credit rating scales for ten ECAIs.

    This change follows a first amendment to the Implementing Regulations, which was proposed by ESAs in 2017 and adopted by EC on April 24, 2018. The first change reflected the withdrawal of the registration of one CRA and the recognition of five additional credit rating agencies (CRAs) since the adoption of the Implementing Regulations in October 2016. Two ECAIs, Creditreform and Spread Research, have not consented to the publication of their mapping reports. In the absence of a consent, ESAs published only the outcome of the revision, that is, the relevant mappings in Annex III of the draft amended implementing technical standards (Mapping tables), along with two documents listing the applicable credit rating scales and credit rating types for each concerned ECAI.


    Related Links

    Comment Due Date: December 31, 2018

    Keywords: Europe, EU, Banking, Insurance, Credit Risk, Standardized Approach, ECAIs, CRA, CRR, Solvency II, ESAs

    Featured Experts
    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458