Regulatory Alerts2020-12-14
Added · Updated
Commission Delegated Regulation (EU) 2021/598 on regulatory technical standards for assigning risk weights to specialised lending exposures
The European Commission establishes regulatory technical standards requiring institutions to assign risk weights to specialised lending exposures using specific assessment criteria for project finance, real estate, object financing, and commodities financing. Institutions must attribute categories to factors and sub-factors, applying weights between 5% and 60% to calculate a weighted average that determines the final risk weight category. The regulation mandates detailed documentation of these assignments, including justifications for weights, additional risk drivers, and any exceptions, and applies from 14 April 2022.
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