Webinar 8 May: Update on the IRB (Termin 2)

The regulatory landscape for European banks continues to present ongoing challenges. The European Banking Authority (EBA) has outlined its vision for the future of the Internal Ratings-Based (IRB) approach, which will be implemented within the next two to three years. Low default portfolios (LDP) portfolios are on the immediate agenda of regulators and for the years to come they would be mostly focused upon and would be reviewed intensively.

We will discuss on this webinar about what makes such models successful, given the expected difficulties due to the low number of defaults and the lack of rating coverage. We would provide you our views about the expectations from the regulators and how to best address these in your LDP. Indeed, already this year, several financial institutions experienced setbacks in their IRB Repair programs which were mostly related to LDP. We would discuss in full length the reasons for these.

Additionally, the European Central Bank (ECB) has released publications outlining their supervisory expectations about the Climate and Environmental (C&E) factors to be taken into consideration for the model development and should be part and parcel of all IRB risk modes.

Furthermore, after all investment done in the last decade in enhancing both IRB and IFRS 9 models, it is a growing market trend to search for synergies and ensure consistency across common data (risk drivers), assumptions and processes.

This Webinar "IRB Hot Topics Part 2" on 8 May 2025 at 12:00 CET will be led by our international experts and will be only accessible for the clients of the PwC network.