The European Central Bank (ECB) published guidelines (GL) on the definition of the "materiality threshold" for banks that are directly supervised by national supervisors, the so-called less-significant institutions (LSIs). The Capital Requirements Regulation (CRR) requires competent authorities to determine the materiality threshold, i.e., the point at which a bank decides a debtor is in default on its loan. The new guidelines for national competent authorities (NCAs) are aligned with the ECB’s regulation defining the materiality threshold for the banks that it directly supervises, the significant institutions (SIs), published in November 2018.

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