Regulatory Alerts2020-02-17
Regulation on the Application of Guidelines on Estimation of LGD Appropriate for an Economic Downturn
The Governing Board of the Bank of Slovenia issued this regulation to formally apply the European Banking Authority's guidelines on estimating Loss Given Default (LGD) during economic downturns to Slovenian banks. The measure requires banks to fully incorporate these downturn LGD estimation requirements into their internal models and obliges the Bank of Slovenia to consider the guidelines when exercising its supervisory powers. The regulation entered into force on 2 July 2019 and became applicable to institutions on 1 January 2021.
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