Regulatory Alerts2025-01-01
Final Report on Draft Regulatory Technical Standards for Off-Balance Sheet Item Allocation and Unconditionally Cancellable Commitments
The European Banking Authority issues final draft Regulatory Technical Standards to specify criteria for assigning off-balance sheet items to risk buckets and factors constraining the cancellation of unconditionally cancellable commitments under the Capital Requirements Regulation. The standards establish a mapping framework based on risk characteristics such as financial covenants and non-credit related events to determine appropriate conversion percentages for credit risk exposure. Additionally, the document outlines a notification process via the COREP framework for classifying off-balance sheet items not explicitly listed in the regulation's annexes.
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