CRD 4: RTS for benchmarking portfolio assessment standards and assessment sharing procedures published in Official Journal

Delegated Regulation (EU) 2017/180 with regard to regulatory technical standards (RTS) for benchmarking portfolio assessment standards and assessment sharing procedures under the Capital Requirements Directive (CRD 4) has been published in the Official Journal.

Article 78 of CRD 4 requires that competent authorities assess the consistency and comparability in risk-weighted assets (RWA) produced by institutions' internal modelling approaches (except for operational risk) for which competent authorities have granted permission to be used for capital purposes.

The RTS specify the procedures for sharing the assessments between competent authorities and with the European Banking Authority (EBA) and the standards for the assessment by competent authorities of the internal approaches applied to calculating own funds for market, the internal model method (IMM), credit valuation adjustment (CVA), and credit risk.

The Delegated Regulation will enter into force on 23 February 2017.