There has been published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2018/171 of 19 October 2017 on supplementing Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the materiality threshold for credit obligations past due. The Delegated Regulation shall apply from 7 May 2018.
The Capital Requirements Regulation requires Member State competent authorities in the banking sector to set a materiality threshold that should help banking institutions to assess the materiality of their past due credit obligations, so that the occurrence of default can be defined in a harmonised manner across the EU. The Delegated Regulation sets certain parameters for Member States when setting this threshold in the sense that it sets out a series of conditions on both the structure and the application of the threshold.