Discussion Paper on the future of the IRB Approach

status: Under development

This discussion paper is on the regulatory measures needed to ensure a robust and clear framework for Internal Ratings Based (IRB) models. The discussion paper seeks stakeholders’ feedback on both how to implement the necessary measures in a consistent way and how to bring forward future changes to the current approach. In addition, an overview of the regulatory measures that are under way is provided. The paper is based on the EBA work on IRB models which will focus its work to improve the comparability of IRB models across institutions on three key areas: review of the IRB regulatory framework, supervisory consistency, which will include annual benchmarking exercises, and increased transparency based on standardised comparable templates. The Discussion paper details how these three strands of work will improve the IRB models, with a particular emphasis on the regulatory framework.

Press Release

Discussion Papers