(1)

Regulation (EU) 2024/1623 of the European Parliament and of the Council (2) deleted the option provided in Article 178(1), point (b), of Council Regulation (EU) No 575/2013 (3) for competent authorities to extend to 180 the number of days past due before a material credit obligation referred to therein is considered to be in default. In order to align Regulation (EU) 2016/445 of the European Central Bank (ECB/2016/4) (4) with Regulation (EU) No 575/2013 in relation to the deleted option, it is therefore necessary to delete the corresponding provision in Regulation (EU) 2016/445 (ECB/2016/4).

(2)

Regulation (EU) 2024/1623 amended Article 138 of Regulation (EU) No 575/2013 by adding a requirement, applicable from 1 January 2025, that, for the purposes of using the standardised approach for calculating risk-weighted exposure amounts in relation to exposures to institutions, an institution must not use an external credit assessment institution (ECAI) credit assessment that incorporates assumptions of implicit government support, except where it refers to an institution owned by or set up and sponsored by central governments, regional governments or local authorities. The amended Article 138 provides further that where the only ECAI credit assessments that exist for an institution not falling within the excepted category of institutions are ECAI credit assessments that incorporate such assumptions of implicit government support, exposures to such an institution must be treated as exposures to an unrated institution, in accordance with Article 121 of Regulation (EU) No 575/2013.

(3)

The ECB sees the need to permit the continued use of ECAI credit assessments that incorporate assumptions of implicit government support where the institution referred to does not fall within the excepted category of institutions, with the effect that exposures to such an institution need not be treated as exposures to an unrated institution. Use of such ECAI credit assessments should continue for a limited period following the date of application of the amendment to Article 138 of Regulation (EU) No 575/2013. Therefore, it is necessary to amend Regulation (EU) 2016/445 (ECB/2016/4) to enable the exercise, until 1 January 2027, of the option provided in Article 495e of Regulation (EU) No 575/2013 to allow continued use of such ECAI credit assessments until that date.

(4)

Therefore, Regulation (EU) 2016/445 (ECB/2016/4) should be amended accordingly,

(1)

Article 4 is deleted;

(2)

the following Article 24a is inserted: