Regulatory Alerts2025-01-01
Amending RTS on the assessment of appropriateness of risk weights and minimum LGD values
The European Banking Authority issues a final report proposing amendments to Delegated Regulation (EU) 2023/206 to align legal references with the Capital Requirements Regulation III (CRR3). The European Commission adopts these changes to update terminology from minimum LGD values to LGD input floor values and correct obsolete references to Article 124. The substantive factors for assessing risk weights and conditions for LGD values remain unchanged, as the CRR3 amendments primarily affect risk weight calibration rather than the assessment criteria for national authorities.
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