EBA: Peer review on the guidelines on the application of the definition of default (EBA/GL/2016/07)

EBA has published a peer review report on the application of the definition of default under Article 178 of the Capital Requirements Regulation (575/2013) (CRR). The report sets out the findings of the peer review of six competent authorities' supervision of credit risk, focusing on application of the definition of default and the EBA Guidelines across three major areas: implementation of EBA/GL/2016/07 in the supervisory framework; effectiveness of the procedure for the submission of the application; effectiveness of the assessment for checking compliance with the definition of default. The peer review found that overall the Guidelines have been fully or largely incorporated into the supervisory framework by all supervisors reviewed.