External Credit Assessment Institutions (ECAI)

ECAIs play a significant role in the standardised approach and securitisation framework of prudential regulation through the mapping of each of their credit assessments to the corresponding risk weights. The EBA, together with ESMA and EIOPA, has been assigned the task of providing an objective mapping across all ECAIs in order to promote a consistent implementation of CRR across the EU. Importantly, the EBA will also contribute to the implementation of CRR/CRD IV and CRA 3 in assessing overreliance on ratings both by regulators and market participants through the publication of guidelines and reports in cooperation with ESMA and EIOPA, in line with the policy agreed by the Financial Stability Board.

Technical Standards, Guidelines & Recommendations

  • ITS on the mapping of ECAIs Credit Assessments for securitisation positions

    These ITS specify the correspondence or ‘mapping’ between credit ratings and credit quality steps that shall determine the allocation of appropriate risk weights to credit ratings issued by ECAIs on securitisations where the Standardised Approach (SA) or the Internal Ratings Based (IRB) approach for securitisations are used. They will be part of the Single Rulebook in banking aimed at enhancing regulatory harmonisation across the European Union (EU) and will allow the credit ratings of all registered credit rating agencies to be used for the purposes of calculating institutions’ capital requirements.

    Status: Final draft adopted by the EBA and submitted to the European Commission

  • Implementing Technical Standards on the credit quality steps for ECAIs credit assessments

    These draft Implementing Technical Standards (ITS) are on the allocation of External Credit Assessment Institution (ECAIs) to an objective scale of credit quality steps under Solvency II.

    Status: Final draft adopted by the EBA and submitted to the European Commission

  • Guidelines on the use of Credit Ratings by Financial Intermediaries

    These Guidelines are to be developed by the Joint Committee of the European Supervisory Authorities (ESAs). The discussion paper presents a set of questions to banks and other financial institutions and ‎intermediaries concerning their reliance on credit ratings in their contractual practice that is outside of the cases in which reliance on ratings is required by the existing regulatory framework. The responses will be used by the Joint Committee together with an independent study carried out by one of the most authoritative academics in the field to present in Q2 2015 a first draft of possible alternatives to credit ratings.

    Status: Under development

  • Implementing Technical Standards on the mapping of ECAIs credit assessments

    The Joint Committee of the three European Supervisory Authorities (EBA, ESMA and EIOPA – ESAs) published its draft Implementing Technical Standards (ITS) on the mapping of the credit assessments to risk weights of External Credit Assessment Institution (ECAIs). These ITS will be part of the Single Rulebook in banking aimed at enhancing regulatory harmonisation across the European Union (EU).

    Status: Final draft adopted by the EBA and submitted to the European Commission

Opinions, Reports and other Publications

 

Opinions

Other Publications