On 9 December 2024, the European Banking Authority (EBA) issued a consultation paper containing draft regulatory technical standards (RTS) amending Delegated Regulation (EU) No 529/2014 supplementing the Capital Requirements Regulation (CRR) regarding RTS for assessing the materiality of extensions and changes of the Internal Ratings Based (IRB) Approach.
Proposed changes
There are two fundamental reasons necessitating amendments to the RTS:
- Amendments to the RTS driven by changes in Regulation (EU) 2024/1623 (CRR3) amending the CRR (e.g., IRB Approach is no longer allowed for equity exposures).
- Enhancing the RTS by leveraging on 10 years of supervisory experience gathered since publication of the original RTS. This includes clarifications on the scope of the RTS, the qualitative criteria (e.g., amended definition or re-categorizing changes from material to ex-ante and vice versa), and clarifications on the calculation of the quantitative criteria (e.g., in case of scope reductions or changes affecting multiple rating systems).
Next steps
The deadline for responding to the consultation is 10 March 2025.
A public hearing will take place via conference call on 15 January 2025 from 15:00 to 16:00 CET. The deadline for registration is 10 January 25, 16:00 CET.