| Risk Supervisory view score | • • • • | Considerations in relation to inherent risk The nature and composition of credit risk exposure imply non-material risk/very low risk. • Exposure to complex products and transactions is not material/very low. The level of credit • concentration risk is not material/very low. The level of forborne and non- | Considerations adequate Risk management are adequate the requirements relevant EBA There is the institution’s policy and overall | in relation to management and controls and controls with respect to set out in the Guidelines. consistency between credit -risk strategy and its strategy and risk |
| There is a low risk of significant prudential on the institution impact | • | performing exposures is not material/very low. • The credit risk posed by | appetite. The organisational for clear credit responsibilities | framework risk is robust with and |
| 1 considering the level of inherent risk and the management and controls. | • • • | performing exposures is not material/very low. The impact of ESG risks, in particular environmental • transition and physical risks, on credit risk is not material/very low. The level of coverage of • provisions and of credit valuation adjustments are adequate and reliable to a very • high level of certainty. The level of coverage and quality of guarantees and collateral are very high. • | separation risk takers and control Credit-risk monitoring systems are Internal limits framework sound. Limits allowing be mitigated line with risk management risk appetite. ESG risks, | of tasks between and management functions. measurement, and reporting appropriate. and the control for credit risk are the credit risk to or limited are in the institution’s credit strategy and in particular |
| There is a medium-low risk of 2 significant prudential impact on the institution considering the | • • | The nature and composition of credit risk exposure imply low to medium risk. Exposure to complex products and transactions is low to medium. | environmental physical integrated management Considerations | transition and risks, are properly into the credit risk and controls. in relation to |
| Risk Supervisory view score | | Considerations in relation to inherent risk | adequate | management and controls |
| level of inherent risk and the management and controls. | • • • • • • • • • | The level of credit concentration risk is low to medium. The level of forborne and non-performing exposures is low to medium. The credit risk posed by performing exposures is low to medium. The impact of ESG risks, in particular environmental transition and physical risks, on credit risk is low to medium. The level of coverage of provisions and of credit valuation adjustments are adequate and reliable to a high level of certainty. The level of coverage and quality of guarantees and collateral are high. The nature and composition of • credit risk exposure imply medium to high risk. Exposure to complex products and transactions is medium to • high. The level of credit concentration risk is medium to high. | Risk management are not compliant to the requirements the relevant There is between credit-risk and its overall appetite. | and controls with respect set out in EBA Guidelines. a lack of consistency the institution’s policy and strategy strategy and risk |
| There is a medium-high risk of significant prudential impact 3 on considering the institution the | • • | The level of forborne and non- • performing exposures is medium to high. The credit risk posed by performing medium to high exposures and subject to is | The organisational for credit robust; separation risk control takers functions. | framework risk is not sufficiently there is no clear of tasks between or management and |
| level of inherent risk and the management and controls. | • • • | further deterioration under • stressed conditions. The impact of ESG risks, in particular environmental • transition and physical risks, on credit risk is medium to high. The level of coverage of • provisions and of credit valuation adjustments is medium. The level of coverage and quality of guarantees and • collateral are medium. | Credit-risk monitoring systems are Internal limits framework not sufficiently Limits allowing be mitigated in line with credit strategy and ESG risks, environmental Considerations | measurement, and reporting not appropriate. and the control for credit risk are sound. the credit risk to or limited are not the institution’s risk management risk appetite. in particular transition and in relation to |
| Risk Supervisory view score | • • • | Considerations in relation to inherent risk The nature and composition of credit risk exposure imply high risk. Exposure to complex products and transactions is high. The level of credit | adequate physical risks, integrated management | management and controls are insufficiently into the credit risk and controls. |
| There is a high risk of significant prudential impact on the institution 4 considering the level of inherent risk and the management and controls. | • • • • • | concentration risk is high. The level of forborne and non-performing exposures is high. The credit risk posed by performing exposures is high. The impact of ESG risks, in particular environmental transition and physical risks, on credit risk is high. The level of coverage of provisions and of credit valuation adjustments is low. The level of coverage and quality of guarantees and collateral are low. | | |