On 19 March 2018, the European Banking Authority (EBA) published a report which assesses the current credit risk mitigation (CRM) framework.

The report is structured in three main parts:

• a description of the CRM provisions under the current Capital Requirements Regulation (CRR), with a view to carrying out a mapping of the articles in the CRR detailing the provisions for the techniques, eligibility and methods of CRM at institutions’ disposal. The purpose of the mapping is to shed light on the CRM framework as provided in the CRR as stakeholders have raised concerns regarding the clarity of the framework as it currently stands;
• an overview of the use of CRM at the European level, which is based on a data collection carried out among competent authorities in April 2017; and
• a section on policy-related aspects on CRM, in two parts: (i) the outcome of the stocktake exercise regarding national provisions in the area of CRM; and (ii) policy issues in the area of CRM identified by the EBA and which call for amendments to the CRR level 1 text.