in force 2025-01-01 MODIFIED+20 −246§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
In paragraph 2, references to conversion factors and internal models approaches to equity exposures have been removed, with the estimates and factors now described as LGD and IRB-CCF rather than LGD and conversion factors, and the separate mention of internal models approaches to equity exposures for rating systems no longer appears.
In paragraph 3(a) and 3(b), the phrase referring to internal models approaches to equity exposures alongside rating systems has been dropped, so those points now refer only to rating systems.
In paragraph 4, the requirement to notify competent authorities of changes now covers changes to rating systems only, no longer mentioning internal models approaches to equity exposures.
Cited: Art. 143, v1 · Art. 143, v2
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 143
Permission to use the IRB Approach
1. Where the conditions set out in this Chapter are met, the competent authority shall permit institutions to calculate their risk-weighted exposure amounts using the Internal Ratings Based Approach (hereinafter referred to as IRB Approach).
2. Prior permission to use the IRB Approach, including own estimates of LGD and conversion factors, IRB-CCF, shall be required for each exposure class and for each rating system and internal models approaches to equity exposures and for each approach to estimating LGDs and conversion factors CCFs used.
3. Institutions shall obtain the prior permission of the competent authorities for the following:
(a) material changes to the range of application of a rating system or an internal models approach to equity exposures that the institution has received permission to use;
(b) material changes to a rating system or an internal models approach to equity exposures that the institution has received permission to use.
The range of application of a rating system shall comprise all exposures of the relevant type of exposure for which that rating system was developed.
4. Institutions shall notify the competent authorities of all changes to rating systems and internal models approaches to equity exposures. systems.
5. EBA shall develop draft regulatory technical standards to specify the conditions for assessing the materiality of the use of an existing rating system for other additional exposures not already covered by that rating system and changes to rating systems under the IRB Approach.
EBA shall submit those draft regulatory technical standards to the Commission by 10 January 2026.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.