ECB finalises report on banking credit risk management

The European Central Bank has published its final report on “Sound practices in counterparty credit risk governance and management,” following a public consultation that ended in July 2023.

The report identifies sound market practices and areas for improvement in managing counterparty credit risk.

The ECB has acknowledged all comments received during the consultation and published a feedback statement, emphasizing proportionality as a principle for sound practices across different organizational setups, activity areas, and risk profiles.