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 Annex III to Regulation (EU) 2016/1799 has been replaced by the text set out in the Annex to Regulation (EU) 2019/2028.
Keywords: Europe, EU, Banking, Securities, Insurance, ECAI, Mapping, CRR, CRA Regulation, Credit Risk, Credit Assessment, Credit Quality Steps, EC
Previous ArticleFASB Issues Summary of Tentative Board Decisions at November Meeting
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.