Consultation paper : guidelines on the application of the definition of default under Article 178 of Regulation (EU) 575/2013

Article 178 of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR) specifies the definition of default of an obligor that is used for the purpose of IRB Approach according to Chapter 3 of Title II in Part Three of the CRR as well as for the Standardised Approach in line with Article 127 of the CRR. In this regard, Article 178(7) of the CRR mandates the EBA to specify guidelines on the application of this Article. Consequently these guidelines specify all aspects related with the application of default of an obligor.