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The EBA launched a consultation on its draft RTS on assessment methodology for internal ratings-based (IRB) approach.
These draft RTS set out standards for the competent authorities to help them assess an institution's compliance with minimum IRB requirements when it:
Competent authorities will also use these draft RTS to assess whether institution meets minimum IRB requirements on an ongoing basis following their regular review of the IRB approach as well as of the changes that require notifications from the institution.
Consequently, these RTS will need to be embedded in day-to-day practices of supervisory authorities.
To ensure uniform interpretation and application by all relevant competent authorities across the EU of all minimum IRB requirements, these draft RTS provide a mapping of the assessment criteria in fourteen chapters. Furthermore, these draft RTS take account of the proportionality principle and put forward relevant methods which have to be used by competent authorities depending on the nature, size and degree of complexity of the institution´s business and organizational structure.
Comments to this consultation can be sent to the EBA by 12 March 2015. A public hearing will then take place at the EBA premises on 9 February from 9.30 to 13.30 UK time.