Article 19
Risk categories
1. Crowdfunding service providers shall ensure that the assignment of loans to risk categories in accordance with Article 18(1)(b) reflects:
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(a) |
the levels of risk of the respective crowdfunding projects as determined by the output of internal credit scoring models in accordance with Chapter I; |
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(b) |
specific factors that are related to the loan, including, but not limited to, the interest rate, the maturity of the loan and the frequency of payment instalments. |
2. Crowdfunding service providers shall ensure that:
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(a) |
the risk-management framework contains adequate procedures for reviewing the assignment of loans to categories and for re-assigning them to a new risk category whenever there is a change in the respective credit scoring or in other factors related to the loan; |
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(b) |
each risk category is associated with a probability of default. |