Danish FSA and the Consumer Ombudsman published guidelines to help consumer loan companies comply with the obligation to assess creditworthiness of consumers before granting loans. The guidelines are intended to aid companies that need to perform a credit rating assessment and constitute an important tool in ensuring that consumers do not end up being over-indebted. The guidelines contain both a comprehensive description of the requirements that follow from the Credit Agreements Act and case law as well as practical instructions on how to meet these requirements. The guidelines do not require all lenders to use one method to perform the credit rating and do not exclude a consumer with a low disposable income from borrowing money if the lender has assessed that the consumer will be able to repay the loans.
Keywords: Europe, Denmark, Banking, Credit Rating Assessment, Credit Risk, Guidelines, Loan Repayment, NPLs, Danish FSA
Previous ArticleBOT to Cease Publication of THBFIX Reference Rate After June 2023
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.