Regulatory Alerts2018-06-05
Implementation of EBA Guidelines on Probability of Default (PD) and Loss Given Default (LGD) Estimates (EBA/GL/2017/16)
The Prudential Supervision and Resolution Authority (ACPR) has declared compliance with the European Banking Authority's Guidelines on Probability of Default (PD) and Loss Given Default (LGD) estimates (EBA/GL/2017/16). These guidelines detail the methodology for estimating PD and LGD, define economic loss observations, clarify calculations for exposures already in default, and specify data usage and margin of conservatism requirements. The guidelines are applicable to payment service providers, including credit institutions, payment institutions, and electronic money institutions, which must take all necessary measures to comply in accordance with Article 16 of Regulation (EU) No 1093/2010.
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