Consultation paper on the implementing technical standards on joint decisions on prudential requirements

The EBA is consulting on draft ITS on joint decisions on prudential requirements (internal models), which specify the joint decision processes to be followed when deciding on whether to grant permissions for 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 process for the approval of material model changes.

 

These technical standards will facilitate the interaction and cooperation between competent authorities while performing this task in an efficient and consistent way.

The draft ITS on joint decisions on prudential requirements follow the mandate in Article 20 of the Capital Requirements Regulation (CRR) and build on the CEBS’s guidelines published on the topic.

Colleges of supervisors are a mechanism for planning and performing supervisory tasks in the EU banking sector in a coordinated manner across the EU.