The European Banking Authority (EBA) has published a discussion paper on the future of the internal ratings-based (IRB) approach under the Capital Requirements Regulation (CRR).

The EBA states that the very high degree of flexibility in the IRB framework has compromised comparability in capital requirements, which has led some observers to question the reliability of IRB models and triggered a lack of trust in the use of these models.

The discussion paper seeks stakeholders’ feedback on both how to implement in a consistent way the necessary measures to ensure a robust and clear framework for IRB models and how to bring forward future changes to the current approach.

The deadline for comments on the EBA discussion paper is 5 May 2015.

View EBA Discussion Paper: Future of the IRB Approach, 4 March 2015