EC Amends Rule on Mapping of External Credit Assessment Institutions
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 Annex III to Regulation (EU) 2016/1799 has been replaced by the text set out in the Annex to Regulation (EU) 2019/2028.
Related Links
Keywords: Europe, EU, Banking, Securities, Insurance, ECAI, Mapping, CRR, CRA Regulation, Credit Risk, Credit Assessment, Credit Quality Steps, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
IASB Publishes Summary of the July 2019 Meeting of Advisory ForumRelated Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
