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The objective of these standards is to facilitate the interaction and cooperation between competent authorities and to strengthen supervision of cross-border banking groups across the EU.
These ITS specify the joint decision process to be followed by Competent Authorities when deciding on whether to grant permissions to institutions to use the internal-ratings based approach (IRB) for credit risk, the internal model method for counterparty risk (IMM), the advanced measurement approach for operational risk (AMA) and the internal models for market risk. They also detail the joint decision process for the approval of material model extensions or changes.
These technical standards enhance the interaction and cooperation between competent authorities in assessing the completeness of applications submitted by institutions, specifying the time planning as well as setting the elements that will need to be included in the joint decision document.