in force 2024-07-09 MODIFIED+712 −245§
Amended by Regulation (EU) 2024/1623 32024R1623
applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)
dates added to the text: 2024-06-30, 2024-12-31 · dates removed: 2017-12-31, 2019-12-31
Sources disagree — the text comparison and the EU's own amendment metadata found this change; the amending act's instructions do not mention it. All are shown; none is overruled.
The heading and subject matter of Article 506 changed from a provision on the definition of default under Article 178(1) to a provision on credit insurance as a credit risk mitigation technique.
The reporting duty now requires EBA, acting in close cooperation with EIOPA, to report by 30 June 2024 on the eligibility and use of credit insurance policies, covering the appropriateness of associated risk parameters, an analysis of riskiness of exposures where credit insurance was recognised, and the consistency of own funds requirements with that analysis, replacing the earlier requirement to report by 31 December 2017 on replacing 90 days with 180 days past due and its continued application after 31 December 2019.
The follow-up action also changed from a discretionary Commission proposal with no addressee or deadline to a proposal that the Commission shall submit, where appropriate, to the European Parliament and to the Council specifically on the treatment of credit insurance, by 31 December 2024.
Cited: Art. 506, v1 · Art. 506, v2
text before / after
texts differ too much for an inline diff; shown separately
before (02013R0575-20240109)
Article 506 Credit risk — definition of default EBA shall, by 31 December 2017, report to the Commission on how replacing 90 days by 180 days past due, as provided in point (b) of Article 178(1), impacts risk-weighted exposure amounts and the appropriateness of the continued application of that provision after 31 December 2019. On the basis of that report, the Commission may submit a legislative proposal to amend this Regulation.
after (02013R0575-20240709)
Article 506 Credit risk — credit insurance By 30 June 2024, EBA shall, in close cooperation with EIOPA, report to the Commission on the eligibility and use of credit insurance policy as a credit risk mitigation technique, including on: (a) the appropriateness of the associated risk parameters referred to in Part Three, Title II, Chapters 3 and 4; (b) an analysis of the effective and observed riskiness of credit risk exposures where a credit insurance was recognised as a credit risk mitigation technique; (c) the consistency of own funds requirements laid down in this Regulation with the outcomes of the analysis under points (a) and (b). On the basis of that report, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal to amend the treatment applicable to credit insurance referred to in Part Three, Title II, by 31 December 2024.