ESAs publish opinion on amended ITS on mapping External Credit Assessment Institutions' credit assessments

The Joint Committee of the European Supervisory Authorities (ESAs), comprising the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA), has published an opinion on the EU Commission’s proposed amendments to draft Implementing Technical Standards (draft ITS) on the mapping of External Credit Assessment Institutions’ (ECAIs') credit assessments under the CRR and Solvency II Directive.

The proposed amendments to the draft ITS set out a less conservative approach to the requirements for mapping ECAIs, favouring competition aspects over prudential considerations. The ESAs disagree with this approach as they believe this will increase the risk to financial stability and that the initial draft ITS had reached a good balance of prudential objectives and market competition.