Supervision of internal models evolves with regulatory developments

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Supervision of internal models evolves with regulatory developments

By European Central Bank

The European Central Bank has published an updated guide incorporating CRR3 regulatory changes, introducing new supervisory expectations for data governance, machine learning use, and market risk models. Banks have simplified their internal ratings-based landscapes with rating systems decreasing 18% from end-2022 to end-2024, while 15% have requested CRR3 transitional arrangements.

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