Public consultation on the draft report on “Sound practices in counterparty credit risk governance and management”
This consultation gives interested parties the opportunity to comment on the draft report on “Sound practices in counterparty credit risk governance and management”.
Deadline for submitting comments: midnight CET on 14 July 2023.
Only comments received before this deadline have been considered.
The report summarises the results of the targeted review performed in the second half of 2022 on how banks govern and manage counterparty credit risk (CCR). It highlights the good practices observed in the market and points to areas where improvement is needed.
The review found that, despite some progress in how banks measure and manage CCR, there is still room for improvement in areas such as customer due diligence, the definition of risk appetite, default management processes and stress testing frameworks. Supervisors’ expectations cover, among other dimensions, banks’ capacity to obtain information from non-bank counterparties, regularly stress test their counterparty credit risk exposures and assess their counterparties’ vulnerabilities under tail risk scenarios.
The good practices described in the report go beyond mere compliance with regulatory requirements and should be considered when banks design their approach to CCR. Approaches to CCR taken by banks should be proportionate to the scale and complexity of the business and products offered, as well as the nature of the counterparties.
Deadline for submitting comments: midnight CET on 14 July 2023.
Only comments received before this deadline have been considered.
Submit your comments by midnight CET on 14 July 2023 using this template.
So that comments can be processed automatically, please do not change the template structure or the file format.
Where appropriate, please provide relevant examples or data.
Only comments sent using the above template will be published after the close of this public consultation.
Submitting comments by email:
Using the above template, send your comments to: SSMPublicConsultation@ecb.europa.eu.
In the subject line, please write “Public consultation on the draft report on “Sound practices in counterparty credit risk governance and management””.
Submitting comments by post:
Using the above template, send your comments to:
European Central Bank Secretariat to the Supervisory Board
“Public consultation on the draft report on “Sound practices in counterparty credit risk governance and management””
60640 Frankfurt am Main
Germany
For details on how your personal data and contribution will be handled, please see this privacy statement:
Privacy statement- 20 February 2023
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“Sound practices for banks’ interactions with highly leveraged institutions”, Basel Committee on Banking Supervision
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