Regulatory Technical Standards on the calculation of credit risk adjustments

Status: Adopted and published in the Official Journal of the EU

These Regulatory Technical Standards (RTS) stem from Article 110(4) of the Capital Requirements Regulation which provides for the EBA to clarify the calculation of specific credit risk adjustments (SCRAs) and general credit risk adjustments (GCRAs) under the applicable accounting framework for (i) the determination of exposure values; (ii) the treatment of expected loss amounts; and (iii) the determination of default.

Summary of document history

Current version Ongoing versions

Draft amending Regulatory Technical Standards on the calculation of credit risk adjustments

Status: In force
Application date: 31/07/2022
Compliance deadline:

Documents

Final draft RTS amending RTS on the calculation of specific credit risk adjustments

(404.92 KB - PDF) Last update 13 December 2021

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Press release

EBA publishes amended technical standards on credit risk adjustments

13 December 2021

The European Banking Authority (EBA) published today its final report on the draft Regulatory Technical Standards (RTS) amending its RTS on credit risk adjustments in the context of the calculation of the Risk Weight (RW) of defaulted exposures under the Standardised Approach (SA) of credit risk. The proposed amendments follow up on the European Commission’s Action Plan to tackle Non-Performing Loans (NPL) in the aftermath of the COVID-19 pandemic, which indicated the need for a revision of the treatment of purchased defaulted exposures under the SA. This revision is necessary to ensure that the prudential framework does not create disincentives to the sale of non-performing assets by banks.

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