ESBG responds to the EBA consultation on the supervisory handbook for IRB systems validation

On 28 October, ESBG responded to the European Banking Authority (EBA) consultation on the supervisory handbook for Internal Rating Based (IRB) systems validation. The handbook aims to clarify the role of the validation function as part of corporate governance, in particular in terms of scope of work and interaction with the credit risk control unit.

As a general comment, we stressed that organizational suspension of the validation function should be independent of the size of the bank. In addition, it should be ensured that the validation manual is free of inconsistencies with existing supervisory regulations such as the ECB Guide on Internal Models.
ESBG stressed that it would be helpful to consider the aspect of proportionality more closely. The validation approach proposed by the EBA hardly differentiates between the materiality of models/portfolios and model changes. On the contrary, the intensity and scope of validation activities must always be based on the expected data situation, the importance of the rating procedure, and the scope and complexity of the changes made.


TOPIC: Prudential regulation


May you rest in peace, Wouter!

It is with great sadness that we have to announce that our colleague and friend, Wouter De Win, passed away on 30 October, 2022 at the age of 58, surrounded by his loved ones.

Wouter started his career at the WSBI-ESBG Joint Office at 17 December 2001 as an accomplished accountant in our Organization Department. Wouter loved to work with figures but also with people. His pleasant personality and positivity was contagious to everyone he met.
He was a real appreciated colleague and delivered excellent work. Always with a smile and ready to help. Even during Covid Times, Wouter would not have missed a day of work at the office.
The last year we noticed that Wouter’s health condition was getting worse and a long hospitalisation followed.
Never we would have thought that we would be saying a definitive goodbye.

May you rest in peace, Wouter!