Guideline in line with ECB regulation for banks directly supervised by ECB The definition ensures consistency and level playing field among banks across euro area
The European Central Bank (ECB) today published a guideline on the
definition of the so-called "materiality threshold" for banks that are
directly supervised by national supervisors, following a public
consultation. The materiality threshold refers to the point at which a
bank decides a debtor is in default on its loan. The new definition
specifies how national supervisors should exercise their discretion in
this regard.
The Capital Requirements Regulation had required the
competent banking supervision authorities to determine this threshold.
The ECB had already defined it for the banks that it supervises directly
in a regulation published in November 2018.
The new guideline for
less significant banks, published today, is aligned with the threshold
defined in the ECB regulation for significant banks. The alignment of
the materiality threshold for credit obligations past due for all banks,
regardless of whether they are supervised directly by the ECB or by
national supervisors, contributes to the consistent application of
supervisory standards to both significant and less significant credit
institutions.
SSM
© ECB - European Central Bank
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