May 17, 2016
The European Banking Authority (EBA) published today a Decision confirming the use of unsolicited credit assessments assigned by External Credit Assessment Institutions (ECAI). The decision will ensure regulatory harmonization across the EU regarding the use of unsolicited credit ratings for calculating institutions’ own funds requirements. The conclusions drawn by the EBA are based on a quantitative and qualitative analysis, which has not identified any evidence of differences in the quality of solicited and unsolicited credit ratings for a given ECAI.
The Decision has been developed on the basis of Article 138 of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR) and will allow the use of unsolicited credit assessments for a number of ECAIs.
The report on unsolicited credit assessments can be found on the EBA website.