Guidelines on credit risk management practices and ...

These draft Guidelines on credit institutions' credit risk management practices and accounting for expected credit losses follow the publication of Guidance ... Skiptomaincontent Home» Regulationandpolicy» Accountingandauditing» GuidelinesOnAccountingForExpectedCredit Followuson: Guidelinesoncreditriskmanagementpracticesandaccountingforexpectedcreditlosses FinalandtranslatedintotheEUofficiallanguages ThesedraftGuidelinesoncreditinstitutions’creditriskmanagementpracticesandaccountingforexpectedcreditlossesfollowthepublicationofGuidancebytheBaselCommitteeinDecember2015onthesamematter.TheseGuidelinesaimatensuringsoundcreditriskmanagementpracticesassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses. DocumentsGuidelinesoncreditriskmanagementpracticesandaccountingforexpectedcreditlosses CompliancetableTranslationsfor:DownloadGuidelinesbgбългарскиcsceštinadadanskdeDeutschelΕλληνικάenEnglishesespañoleteestikeelfisuomifrfrançaishrhrvatskihumagyarititalianoltlietuviukalbalvlatviešuvalodamtMaltinlNederlandsplPolskiptPortuguêsroRomânăskSlovencinaslSlovenščinasvsvenskaLinksAccountingandauditingPublicHearing  NewsPressReleaseConsultationPapers News EBAconsultsonGuidelinesoncreditriskmanagementpracticesandaccountingforexpectedcreditlosses 26July2016 TheEuropeanBankingAuthority(EBA)launchedtodayaconsultationondraftGuidelinesoncreditinstitutions'creditriskmanagementpracticesandaccountingforexpectedcreditlosses;itfollowsthepublicationofGuidancebytheBaselCommitteeinDecember2015onthesamematter.TheseGuidelinesaimatensuringsoundcreditriskmanagementpracticesassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses.Theconsultationwillrununtil26October2016.   TheEBAspecifiedsoundcreditriskmanagementpracticesforcreditinstitutionsassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses.High-qualityandconsistentapplicationoftheaccountingstandardsisthebasisfortheeffectiveandconsistentapplicationoftheregulatorycapitalstandards.ThesedraftGuidelinesbuildontheBCBSguidanceoncreditriskandaccountingforexpectedcreditlossespublishedbytheBaselCommitteeonBankingSupervision(BCBS)inDecember2015.   AsignificantnumberofcreditinstitutionsintheEUapplytheIFRSStandardswhichwilleventuallyrequirethemeasurementofimpairmentlossprovisionstobebasedonanexpectedcreditlossaccountingmodelratherthanonanincurredlossaccountingmodel.TheEBAwelcomesthisapproachoncreditlossprovisioning,asitshouldalsocontributeinaddressingtheG20'sconcernsabouttheissueofthe‘toolittle,toolate'recognitionofcreditlossesandimprovetheaccountingrecognitionofcreditlossesbyincorporatingabroaderrangeofcreditinformation.   TheEBAguidelineswouldnotpreventacreditinstitutionfrommeetingtheimpairmentrequirementsofIFRS9.Rathertheseguidelinesshouldbereadasthesupervisoryapproachtosupporttheappropriateapplicationofthosestandards.Theseguidelinesdonotsetoutrequirementsregardingthedeterminationofexpectedlossesforregulatorycapitalpurposes. Consultationprocess ‎CommentstothisconsultationcanbesenttotheEBAbyclickingonthe"sendyourcomments"buttonontheconsultationpage.Allcontributionsreceivedwillbepublishedfollowingthecloseoftheconsultation,unlessrequestedotherwise.Pleasenotethatthedeadlineforthesubmissionofcommentsis26October2016.ApublichearingwilltakeplaceattheEBApremisesonMonday3October2016from14.30to16.30UKtime.  Legalbasis TheEBAhasdevelopedtheseGuidelinesonitsowninitiativeinaccordancewithArticle16ofRegulation(EU)No1093/2010whichenvisagesthattheAuthorityshallissueguidelineswithaviewtoensuringthecommon,uniformandconsistentapplicationofUnionlawandtoestablishconsistent,efficientandeffectivesupervisorypracticeswithintheEuropeanSystemofFinancialSupervision.   Presscontacts FrancaRosaCongiu [email protected]| +33186527052| Follow@EBA_News PressRelease EBApublishesfinalGuidelinesoncreditinstitutionscreditriskmanagementpracticesandaccountingforexpectedcreditlosses 12May2017 TheEuropeanBankingAuthority(EBA)publishedtodayitsfinalGuidelinesoncreditinstitutions'creditriskmanagementpracticesandaccountingforexpectedcreditlosses.TheseGuidelinesaimatensuringsoundcreditriskmanagementpracticesassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses. TheGuidelinesarepartoftheEBA'sworkontheimplementationofIFRS9anditsinteractionwithprudentialrequirementsandbuildontheGuidancepublishedbytheBaselCommitteeonthesamematter.   AsignificantnumberofcreditinstitutionsintheEUapplytheIFRSstandards,whichfortheaccountingperiodsbeginningonorafter1January2018 requirethemeasurementofimpairmentlossprovisionstobebasedonanexpectedcreditlossaccountingmodel(IFRS9)ratherthanonanincurredlossaccountingmodel(IAS39).TheEBAwelcomesthisapproachoncreditlossprovisioning,asitshouldalsocontributeinaddressingtheG20'sconcernsabouttheissueofthe‘toolittle,toolate'recognitionofcreditlossesandimprovetheaccountingrecognitionofcreditlossesbyincorporatingabroaderrangeofcreditinformation.   TheEBAfinalGuidelinessetoutsoundcreditriskmanagementpracticesforcreditinstitutionsassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses.High-qualityandconsistentapplicationoftheaccountingstandardsisthebasisfortheeffectiveandconsistentapplicationoftheregulatorycapitalstandards.   However,theseGuidelinesdonotsetoutrequirementsregardingthedeterminationofexpectedlossesforregulatorycapitalpurposesandwouldnotpreventacreditinstitutionfrommeetingtheimpairmentrequirementsofIFRS9.   TheseGuidelinesbuildontheglobalguidanceoncreditriskandaccountingforexpectedcreditlossespublishedbytheBaselCommitteeonBankingSupervision(BCBS)inDecember2015. Legalbasis TheEBAhasdevelopedtheseGuidelinesonitsowninitiativeinaccordancewithArticle16ofRegulation(EU)No1093/2010whichenvisagesthattheAuthorityshallissueguidelineswithaviewtoensuringthecommon,uniformandconsistentapplicationofUnionlawandtoestablishconsistent,efficientandeffectivesupervisorypracticeswithintheEuropeanSystemofFinancialSupervision.   Presscontacts FrancaRosaCongiu [email protected]| +33186527052| Follow@EBA_News ConsultationPapers ConsultationonGuidelinesoncreditriskmanagementpracticesandaccountingforexpectedcreditlosses(EBA-CP-2016-10) Summary 26/07/2016 TheEuropeanBankingAuthority(EBA)launchedtodayaconsultationondraftGuidelinesoncreditinstitutions’creditriskmanagementpracticesandaccountingforexpectedcreditlosses;itfollowsthepublicationofGuidancebytheBaselCommitteeinDecember2015onthesamematter.TheseGuidelinesaimatensuringsoundcreditriskmanagementpracticesassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses.Theconsultationwillrununtil26October2016.   TheEBAspecifiedsoundcreditriskmanagementpracticesforcreditinstitutionsassociatedwiththeimplementationandon-goingapplicationoftheaccountingforexpectedcreditlosses.High-qualityandconsistentapplicationoftheaccountingstandardsisthebasisfortheeffectiveandconsistentapplicationoftheregulatorycapitalstandards.ThesedraftGuidelinesbuildontheBCBSguidanceoncreditriskandaccountingforexpectedcreditlossespublishedbytheBaselCommitteeonBankingSupervision(BCBS)inDecember2015.   AsignificantnumberofcreditinstitutionsintheEUapplytheIFRSStandardswhichwilleventuallyrequirethemeasurementofimpairmentlossprovisionstobebasedonanexpectedcreditlossaccountingmodelratherthanonanincurredlossaccountingmodel.TheEBAwelcomesthisapproachoncreditlossprovisioning,asitshouldalsocontributeinaddressingtheG20’sconcernsabouttheissueofthe‘toolittle,toolate’recognitionofcreditlossesandimprovetheaccountingrecognitionofcreditlossesbyincorporatingabroaderrangeofcreditinformation.   TheEBAguidelineswouldnotpreventacreditinstitutionfrommeetingtheimpairmentrequirementsofIFRS9.Rathertheseguidelinesshouldbereadasthesupervisoryapproachtosupporttheappropriateapplicationofthosestandards.Theseguidelinesdonotsetoutrequirementsregardingthedeterminationofexpectedlossesforregulatorycapitalpurposes.   Consultationprocess ‎CommentstothisconsultationcanbesenttotheEBAbyclickingonthe"sendyourcomments"buttonontheconsultationpage.Allcontributionsreceivedwillbepublishedfollowingthecloseoftheconsultation,unlessrequestedotherwise.Pleasenotethatthedeadlineforthesubmissionofcommentsis26October2016.ApublichearingwilltakeplaceattheEBApremisesonMonday3October2016from14.30to16.30UKtime.    Legalbasis TheEBAhasdevelopedtheseGuidelinesonitsowninitiativeinaccordancewithArticle16ofRegulation(EU)No1093/2010whichenvisagesthattheAuthorityshallissueguidelineswithaviewtoensuringthecommon,uniformandconsistentapplicationofUnionlawandtoestablishconsistent,efficientandeffectivesupervisorypracticeswithintheEuropeanSystemofFinancialSupervision.     ConsultationPaperonGuidelinesonAccountingforExpectedCredit   Responses ANCAssociationforFinancialMarketsinEuropeAssociationofGermanBanksAustriaEconomicChamber,DivisionBankandInsuranceBBADeutscheBankEACB-EuropeanAssociationofCo-operativeBanksErnst&YoungLLPEuropeanAssociationofPublicBanksEuropeanBankingFederationEuropeanSavingsandRetailBankingGroup(ESBG)FRENCHBANKINGFEDERATIONFederationofEuropeanAccountantsHellenicBankAssociationICAEWKPMGIFRGLimited PublicHearing Note:APublicHearingisrelatedtothisconsultationbutisnotvisibletopublicuserssincethedateispast