Article 506
Credit risk — credit insurance
By 30 June 2024, EBA shall, in close cooperation with EIOPA, report to the Commission on the eligibility and use of credit insurance policy as a credit risk mitigation technique, including on:
(a)
the appropriateness of the associated risk parameters referred to in Part Three, Title II, Chapters 3 and 4;
(b)
an analysis of the effective and observed riskiness of credit risk exposures where a credit insurance was recognised as a credit risk mitigation technique;
(c)
the consistency of own funds requirements laid down in this Regulation with the outcomes of the analysis under points (a) and (b).
On the basis of that report, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal to amend the treatment applicable to credit insurance referred to in Part Three, Title II, by 31 December 2024.