Article 495b
Transitional arrangements for specialised lending exposures
2.
EBA shall prepare a report on the appropriate calibration of risk parameters, including the haircut parameter, applicable to specialised lending exposures under the IRB Approach, and in particular on own estimates of LGD and LGD input floors for each specific category of specialised lending exposures as referred to in Article 147(8). EBA shall in particular include in its report data on average numbers of defaults and realised losses observed in the Union for different samples of institutions with different business and risk profiles. EBA shall recommend specific calibrations of risk parameters, including the haircut parameter, that would reflect the specific and different risk profile for each specific category of specialised lending exposures.
EBA shall submit that report to the European Parliament to the Council and to the Commission by 10 July 2026.
On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2027.
4.
EBA shall prepare a report, analysing the following:
(a)
the evolution of the trends and conditions in markets for object finance in the Union;
(b)
the effective riskiness of the object finance exposures over a full economic cycle;
(c)
(d)
the appropriateness of the definition of the sub-class of “high quality object finance” and to assign to that sub-class of exposures a different prudential treatment.
EBA shall submit that report to the European Parliament, to the Council and to the Commission by 31 December 2030.
On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.