+8. Monitoring framework
---+8.1 General provisions for the credit risk monitoring framework
------+240. Institutions should have a robust and effective monitoring framework, supported by an adequate …
------+241. The monitoring framework should enable institutions to manage and monitor their credit risk …
------+242. Institutions should ensure that the credit risk monitoring framework is well defined and …
------+243. Institutions should consider, in the design and implementation of their credit risk monitoring …
------+244. The monitoring process should be based on a principle of follow-up action to support and …
------+245. The credit risk monitoring framework should cover the following: a. the payment behaviour of …
------+246. The monitoring framework and data infrastructure should allow institutions to follow the …
------+247. Institutions should ensure that the credit risk monitoring framework and data infrastructure …
------+248. As part of credit risk monitoring and reporting, institutions should identify the relevant …
------+249. When monitoring credit risk, institutions should have appropriate methodologies and practices …
------+250. Institutions should ensure that operational metrics relating to credit risk governance are …
---+8.2 Monitoring of credit exposures and borrowers
------+251. As part of the monitoring of credit exposures and borrowers, institutions should monitor all …
------+252. Institutions should also monitor whether the borrower and collateral are in line with the …
------+253. Institutions should continuously monitor and assess the quality of credit exposures and the …
------+254. The ongoing monitoring should be based on internal information regarding the credit facilities …
------+255. In addition, institutions should also monitor concentration measures against the values …
------+256. Institutions engaged in syndicating leveraged transactions should implement internal standards …
---+8.3 Regular credit review of borrowers
------+257. Institutions should also perform regular credit reviews of borrowers that are at least …
------+258. The review process and frequency should be specific and proportionate to the type and risk …
------+259. To this end, institutions should also, if appropriate, periodically update relevant financial …
------+260. Institutions should carry out periodic reviews for the purposes of the assessment of the …
------+261. Borrowers’ credit reviews should include an assessment of existing debt and borrowers’ …
------+262. Institutions should assess risks associated with the refinancing of existing debt, monitoring …
------+263. A regular credit risk review should take into consideration both the individual and the total …
------+264. If applicable, institutions should also review guarantors under the credit facility agreement. …
------+265. In addition to monitoring credit and financial metrics, institutions should take into account …
---+8.4 Monitoring of covenants
------+266. Where relevant and applicable to specific credit agreements, institutions should monitor and …
------+267. Where applicable, institutions should monitor borrowers’ adherence to the covenants agreed in …
------+268. Institutions should also monitor non-financial covenants not only by collecting the covenant …
---+8.5 Use of early warning indicators/watch lists in credit monitoring
------+269. As part of their monitoring framework, institutions should develop, maintain and regularly …
------+270. The EWIs should have defined trigger levels set with regard to the levels specified in credit …
------+271. The EWI framework should contain a description of the relevance of the indicators in relation …
------+272. On identifying a triggered EWI event at the level of an individual exposure, portfolio …
------+273. When the actions include interaction with the borrower, institutions should have regard to …
------+274. As part of their ongoing monitoring of credit risk, institutions should consider the following …
------+275. When an EWI has been triggered for closer monitoring and further investigation, immediate …
------+276. Relevant credit decision-makers should, based on the abovementioned analysis and other …
------+277. Triggering EWIs should lead to an increased frequency in the reviewing process, including …
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8. Monitoring framework
8. Monitoring framework
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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