The European Banking Authority (EBA) launches today a consultation on Draft Regulatory Technical Standards (RTS) on the specification of the calculation of specific and general credit risk adjustments. These RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in Europe. The consultation runs until 30 September.
Main features of the RTS
The proposed draft RTS elaborate on the specification for the calculation of specific credit risk adjustments (SCRAs) and general credit risk adjustments (GCRAs) under the applicable accounting framework for:
This RTS has been drafted in a way that it can be applied irrespective of the accounting framework.
The proposed consultation paper is based on the draft Capital Requirements Regulation (CRR) as proposed by the European Commission on 20th July 2011. Significant changes subsequently proposed during the legislative procedure were also taken into account. As the text is still being discussed by the EU legislator, some of the mandates for the EBA to develop Binding Technical Standards (BTS) may be modified, added or deleted in the adopted Regulation. Therefore, the proposed RTS may be amended after the consultation to take into account the final CRR text.
These RTS have to be submitted to the EU Commission by 1 January 2013.