ACPR to Partially Comply with EBA Guidelines on Loan Origination
ACPR published a notice on the implementation of EBA guidelines on loan origination and monitoring (EBA/GL/2020/06). The notice highlights that ACPR complies with the EBA guidelines with the exception of the provisions of paragraphs 90 and 247 of the guidelines related to the single customer view. ACPR will apply these guidelines as of June 30, 2022. Paragraph 90 of the EBA guidelines states that institutions and creditors should have an accurate single customer view that enables an assessment of the borrower’s ability to service and repay financial commitments. Paragraph 247 states that institutions should ensure that the credit risk monitoring framework and data infrastructure also enable a single customer view.
In May 2020, EBA had published the guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations. The guidelines contain EBA expectations for improved creditworthiness assessments, with the expectations being applicable to all banks—including those offering loans to consumers, small and medium-size enterprises (SMEs), and corporates—and to other creditors offering loans to consumers.
Related Links
Keywords: Europe, France, Banking, Credit Risk, NPLs, Loan Origination, ESG, Single Customer View, EBA, ACPR
Previous Article
PRA Finalizes Policy to Support Transposition of BRRD2Next Article
APRA Connect to Go Live by September 2021Related Articles
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
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.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
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.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
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.
