The EBA updates technical standards on the joint decision process for internal model authorisation

The European Banking Authority (EBA) today published its final draft Implementing Technical Standards (ITS) amending the existing Implementing Regulation on the joint decision process for internal model authorisation under the Capital Requirements Regulation (CRR). The revised ITS incorporate changes to the EU legal framework. This final draft amending ITS are part of the first phase of the EBA roadmap for implementing the EU Banking Package.

The key amendments include:

• a revised scope for the use of internal models for regulatory purposes under CRR III, where the possibility of applying these models for operational risk has been removed. As a result, references to the Advanced Measurement Approach (AMA) have been deleted from the scope of the revised ITS.
• updated references to the ITS and Regulatory Technical Standards (RTS) on the functioning of supervisory colleges, reflecting changes in the revised supervisory colleges regulatory framework.

Legal basis

These final draft ITS have been developed in accordance with Article 20(8) of the Regulation (EU) 575/2013 (CRR), as amended by the Regulation (EU) 2024/1623 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor (CRR III).