The next phase of IRB - What's new in the ECB's Guide to Internal Models

The regulatory landscape for IRB models continues to evolve with the publication of the revised ECB's Guide for Internal Models in July 2025, which is an essential document for understanding how to best ensure the requirements for using IRB approaches as set out in the CRR are being met. This version continues to build on previous editions by incorporating requirements from CRR3 as well as detailing numerous credit risk relevant changes including updates on roll-out and permanent partial use, internal validation & internal audit, and clarifications of the responsibilities of senior management relating to ECB submissions. In addition, contained are refined expectations on the Definition of Default DoD), the estimation of PD and LGD credit risk parameters, as well as clarifications n the use of Machine Learning techniques in internal models. What are the most important changes? How will these changes affect banks? Find out with the PwC Webinar: The next phase of IRB - What's new in the ECB's Guide to Internal Models. For more information contact: Kaan Aksel Partner, PwC Germany [email protected] Luis Felipe Barbosa Partner, PwC Portugal [email protected] Jose Diogo Beirao Director, PwC Portugal [email protected] Robert Fleming Manager, PwC Germany [email protected]