10 July 2019
On 9 July 2019, the European Banking Authority (EBA) published a progress report on the roadmap set out in 2016 to repair internal models used to calculate own funds requirements for credit risk under the Internal Ratings Based (IRB) approach.
The roadmap aims to address the concerns about undue variability of own funds requirements and to restore trust in IRB models by ensuring comparability of the estimates of risk parameters, while retaining their risk sensitivity. The report marks the finalisation of the IRB regulatory review and provides clarity on the next steps.
For additional information, click here