78. For the purposes of paragraph 75, institutions should consider the following areas/tasks: a. …

For the purposes of paragraph 75, institutions should consider the following areas/tasks:

• a. developing and maintaining credit-granting and monitoring processes and procedures;
• b. defining and developing processes, mechanisms and methodologies for credit risk appetite, credit risk strategy and credit risk policies, including the overall cascading-down process for policies and procedures, and business strategy;
• c. designing and implementing an appropriate credit decision-making framework in accordance with these guidelines;
• d. designing, defining and performing credit risk monitoring and reporting, including early warning systems, credit portfolio and aggregate risk monitoring, including in relation to ICAAP and any applicable regulatory metrics, e.g. large exposures rules;
• e. performing an assessment of creditworthiness and a credit risk analysis for scoring or rating purposes;
• f. providing an independent/second opinion on the creditworthiness assessment and credit risk analysis for the purposes of credit decision-making, specifying in which circumstances, considering the specificities of the credit facility, its size and the risk profile of the borrower, this independent/second opinion is relevant;
• g. assessing the appropriateness of allowances in accordance with the relevant accounting framework;
• h. developing new credit products, also considering the requirements for the new product approval process, and ongoing monitoring of the appropriateness of credit products;
• i. managing early arrears and non-performing exposures, and granting and monitoring forbearance measures, in line with the provisions of the EBA Guidelines on management of non-performing and forborne exposures²⁶ and the EBA Guidelines on arrears and foreclosure under Directive 2014/17/EU²⁷ , and the institution’s internal policies – in relation to lending to consumers, such tasks may also include liaising with independent debt-counselling and debt advice services when relevant;
• j. performing stress tests on the aggregate credit portfolio as well as on relevant sub-portfolios and geographical segments;
• k. monitoring individual exposures through regular credit reviews, in accordance with the requirements set out in Section 8, including sample reviews of credit lines;
• l. ensuring the integrity and reliability of the internal ratings assignment process, as described in Article 173 of Regulation (EU) No 575/2013, where relevant for institutions with permission to use an internal ratings-based approach, and the integrity and reliability of the rating scale and ratings assignment process used by the institution, for the institutions using the standardised approach;
• m. performing quality assurance of credit assessments, taking into account an appropriate sample size, and ensuring that credit risk is properly identified, measured, monitored and managed within the institution’s business origination activities, and that regular reporting is communicated to the institution’s management body.

²⁶ EBA/GL/2018/06.

²⁷ EBA/GL/2015/12.

1. Forbhreathnú

1.1 Tagairtí

• Airteagal 173 Sláine an phróisis sannta

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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