EBA – Consultation on amending data collection for benchmarking exercise in 2025

On January 18th, the European Banking Authority (EBA) initiated a public consultation on proposed amendments to the Implementing Technical Standards (ITS) that specify the data collection methods for the benchmarking exercise related to credit and market risk for the year 2025.

Benchmarking is a tool utilized by companies to monitor and enhance the quality of internal models relevant to their capital adequacy by comparing existing performance with the industry’s best practices.

The document presented by EBA updates the information to be collected during the 2025 exercise, introducing new models regarding the market risk and making minimal changes regarding credit risks, such as clarifying the mandatory reporting of probability of default parameters.

Observations on the consultation document may be submitted to the Authority through its website within March 27, 2024. Contributions will be considered and – unless otherwise requested – published.