Regulatory Alerts2022-12-22
Added · Updated
CSSF Circular 22/824: Application of EBA Guidelines on Loan Origination and Monitoring
The CSSF applies the EBA Guidelines on Loan Origination and Monitoring (EBA/GL/2020/06) to less significant credit institutions, Luxembourg branches of third-country credit institutions, and specific professionals and creditors under Article 28-4 of the LFS and relevant EU Directives. The Guidelines require In-Scope entities to implement robust internal governance, loan origination procedures, creditworthiness assessments, pricing frameworks, collateral valuation, and monitoring processes, while repealing the previous EBA Guidelines on creditworthiness assessment (EBA/GL/2015/11). Sections 5 and 6 apply to loans originated after 31 March 2023 or existing loans with changed terms after that date, Section 7 applies to valuations conducted after 31 March 2023, and entities must collect missing monitoring data for existing exposures by 30 June 2024.
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