On 2 June 2023, the European Banking Authority (EBA) published a document following a targeted review of governance and risk management of counterparty credit risk (CCR) at 23 institutions that were materially active in derivatives and securities financing transactions with non-banking counterparties.

The document provides a collection of good practices in CCR governance and management that were observed during the execution of the review and an assessment of the convergence towards those practices, accounting for the proportionality principle (particularly for institutions with a less complex CCR business). The EBA’s objective is to encourage institutions to improve their risk management capabilities in a way that is commensurate with their CCR profile.