Regulatory Alerts2020-12-15
Added · Updated
Circular Letter No. CC/2020/00000068
Supervised credit institutions applying the Internal Ratings-Based (IRB) approach with own estimates of Loss Given Default (LGD) must adopt necessary measures to comply with the European Banking Authority's Guidelines on Credit Risk Mitigation (EBA/GL/2020/05) effective January 1, 2022. These guidelines, originally due in 2021, were delayed by one year to align with other regulatory products. Institutions must follow these guidelines as a complement to the General Regime of Credit Institutions and Financial Societies within the context of current legislation.