The Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV) set out prudential requirements for banks and other financial institutions which have been applied from 1 January 2014. Among others, the CRR contains specific mandates for the European Banking Authority (EBA) to develop draft regulatory technical standards (RTS) to specify the conditions according to which Member State competent authorities may grant permission to institutions to use relevant data covering a period of two years rather than five years for estimation of risk parameters, when they implement the internal ratings based approach.

The EBA has now published its final draft RTS on the conditions for Member State competent authorities to grant permission for institutions to use relevant data covering shorter time series when estimating risk parameters.

View EBA publishes draft technical standards on data waiver, 23 December 2014