ECB guide to internal models : July 2025

1. Articles 143, 283 and 325 of Regulation (EU) No 575/2013 (CRR), as amended by Regulation (EU) 2019/876 (CRR2) and Regulation (EU) 2024/1623 (CRR3), require the European Central Bank (ECB) to grant permission to use internal models for credit risk, counterparty credit risk and market risk where the requirements set out in the corresponding chapters of the CRR are met by the institution(s) concerned. Based on the current applicable European Union (EU) and national law, the ECB guide to internal models provides transparency on how the ECB understands those rules and how it intends to apply them when assessing whether institutions meet these requirements. 2. The guide is also intended as a document for the internal use of the different supervisory teams, with the aim of ensuring a common and consistent approach to matters related to internal models. When applying the relevant regulatory framework in specific cases, the ECB will take into due consideration the particular circumstances of the institution concerned. 3. This guide should not be construed as going beyond the current existing applicable EU law including, among others, adopted regulatory and implementing technical standards (RTS and ITS), and national law and therefore is not intended to replace or overrule applicable EU and national law. 4. This guide should also be considered without prejudice to any policy stances that the European Banking Authority (EBA) may take when fulfilling its mandate under the CRR3.