199. Pricing frameworks should reflect institutions’ credit risk appetite and business strategies …

Pricing frameworks should reflect institutions’ credit risk appetite and business strategies, including profitability and risk perspective. Loan pricing should also be linked to the characteristics of the loan product and consider competition and prevailing market conditions. Institutions should also define their approach to pricing by borrower type and credit quality, and riskiness of the borrower (in the case of individual pricing) when appropriate. Institutions should ensure that the pricing framework is well documented and supported by appropriate governance structures, such as a pricing committee, that are responsible for the maintenance of the overall pricing framework and for individual pricing decisions when relevant.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/