IRB Hot Topics: Simplification and Changes to the Slotting Approach/DoD

The European Banking Authority (EBA) has launched a public consultation on its Discussion Paper concerning the simplification and assessment of the credit risk framework. The paper presents preliminary ideas to enhance usability, efficiency, and simplicity, encouraging broader discussion on future EBA work in this area. In this webinar we will share our understanding about the expected changes and options what would be in fact has the most impact for both Standardised and IRB Approaches: • Direction of travel: Fewer add-ons, more usability—while maintaining Basel alignment and prudential levels. What supervisors will focus on next. • What changes where: Standardised and IRB are the two pillars—clearer definitions, stronger harmonisation, more proportionality. Expected impact on BAU and supervisory dialogue. • Standardised—practical impact: Real estate and external ratings in focus. Key friction points (market specifics, limited harmonised granular data, eligibility/valuation) and what Article 430a CRR could mean for loss-data metrics. • IRB - reduce complexity: Fragmented texts (RTS, Guidelines, expectations, Q&As) drive overhead. Where the DP targets consolidation and clarifications (e.g., continuous rating scale testing, CRR3 facility definition, representativeness) and scope for more proportionate modelling/validation. For more information please contact: Kaan Aksel Partner, PwC Germany [email protected] Luis Filipe Barbosa Partner, PwC Portugal [email protected] Petr Geraskin Senior Manager, PwC Germany [email protected]