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
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
ISSB Standards May Become Effective from January 2024
The International Organization of Securities Commissions (IOSCO) welcomed the confirmation statement by the International Sustainability Standards Board (ISSB) setting out its progress in the development of its first sustainability-related corporate disclosure standards.
