Financial and capital market Commission, the provisions of regulations No 248 Riga 2014 October 29 (financial and capital market Commission Council meeting Protocol No 5. p. 39)
Credit risk management regulations Issued in accordance with the provisions of the credit institutions act, the fourth paragraph of article 34.2 and financial instruments market law in the fourth paragraph of article 122.1 i. General questions 1. "credit risk management regulations" (hereinafter-the rules) lays down minimum requirements for the management of credit risk and are binding on the Republic of Latvia registered credit institutions and investment firms, which are institutions European Parliament and Council Regulation (EU) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms and amending Regulation (EC) No 648/2012 (hereinafter Regulation No 575/2013) (hereinafter referred to as the authority). The institutions comply with the requirements of this regulation and the consolidation of individual groups or sub-groups of consolidation level, ensuring the consolidation group or subgroup, as well as all the provisions of the subsidiary requirements of appropriate credit risk management. 2. it is recommended to apply the provisions of the Republic of Latvia registered credit unions, investment brokerage firms, which does not have the authority of Regulation No 575/2013, investment management companies, alternative investment fund managers, insurance companies, reinsurance companies, insurance brokerage firms, private pension funds, regulated market organizers, payment institutions and electronic money institutions, insofar as the rules apply to them. 3. explanation of terms used in the rules: 3.1 credit risk – the possibility of losses in case the counterparty will fail or refuse to fulfill contract obligations to the relevant authority; 3.2. credit terms, this provision has any contractual relationship that worked to create obligations or potential obligations to the other party; 3.3. other terms comply with the Regulation No. 575/2013 used terms, financial and capital market Commission (hereinafter the Commission) on March 20. Regulation No 38 regulations "capital adequacy assessment process of creating legislative provisions", and of the Commission 01.11.2012. normative regulations No. 233 "internal control system" of the legislative provisions used terms. 4. Each institution shall constitute your transaction the appropriate credit risk management system, taking into account the total amount of credit, credit, counterparty, the credit risk management of the characteristics of the participating departments, and other factors which significantly affect the credit risk of the institution in question. The authority shall ensure the credit risk management, taking into account its interaction with the other institutions the risks inherent to the action. Credit risk management is carried out continuously exposed to credit risk in the transaction's entire existence. 5. Credit institutions are subject to both loans and other assets types, such as debt securities, derivatives, as well as the EU Regulation No. 575/2013 1. off-balance-sheet items referred to in the annex, contained in the transactions. 6. Rules applicable to all institutions and services activities, which have credit risk, regardless of whether they are included in the trading book or non-trading book. 7. Counterparty credit risk, country risk and settlement risk, within the meaning of these provisions is also considered as a credit risk. 8. to ensure effective management of credit risk, the authority: 8.1. develop and approve the credit risk strategy and policies and determine the responsibility of the management of credit risk management, ensuring appropriate credit for the activity of managing the environment; 8.2. provide clearly defined reasonable credit granting criteria; 8.3. continually make credit administration and credit risk measurement, evaluation, and monitoring; 8.4. ensure adequate credit risk control. 9. For effective management of credit risk response bodies (IBS-if one exists) and the Board.
II. The credit risk strategy, policy and procedures authority 10. credit risk strategy sets the allowable level of credit risk and other parameters of raksturojošo credit risk. Acceptable credit risk level and other parameters of credit risk based on the institution's ability to take on credit risk assessment results. 11. the authority shall assess their ability to take on credit risk, taking into account other institutions functioning right risks arising out of the institution's risk strategy. The authority shall establish, document and consistently applied methodology, the authorities can take credit risk assessment, which determines the methods or models, as well as their parameters, assumptions and estimates. Given that authority the ability to take on the credit risk is dependent on the authorities in the capital held, the amount of the total size of the credit and credit quality, as well as income and expenses arising from credit risk methodology in evaluating activities, you can use the following representative of the institution for the analysis: 11.1 the previous year and the planned credit equity requirements size determined in accordance with Regulation No 575/2013; 11.2. the previous year, and planned to cover the need of credit risk capital, determined in accordance with the provisions of Commission regulations No 20.03.2009.. 38 "capital adequacy assessment process of creating legislative provisions"; 11.3. the previous year, and projected income and expenditure related to credit risk; 11.4. the previous year and projected the total amount of credit; 11.5. different scenario stress test results. 12. The credit risk strategy correspond to the level of detail to authorities bringing total approximately and the diversity of activities and strategy defined by at least the following: 12.1. types of credit institution intends to grant (for example, commercial credits, consumer credit, residential mortgage-backed loans, loans whose borrowers income currency different from the currency of the credit), sectors, geographical location, different types of credit allowable concentration levels, currency, maturity and yield; 12.2. the acceptable level of credit risk and profit, which the authority wishes to acquire, taking the credit risk; 12.3. to cover the credit risk of the required capital; 12.4. the basic principles of classification according to their credit quality; 12.5. the desired level of quality and the total amount of credit increase or reduction; 12.6. the estimated credit risk mitigation techniques. 13. developing the credit risk strategy, the authority shall assess the implementation of the required qualifications and availability, as well as management information system and organizational structure of this strategy possible.
14. the Authority's credit policies and procedures to ensure the credit risk strategy and determine the powers and rules for effective allocation of credit, credit administration, credit risk identification, measurement, evaluation, monitoring, control and mitigation. Policies and procedures to ensure compliance with the regulatory requirement to meet the reasonable practice of the institution, the size, nature and complexity of the activities and provide the resources needed for the application. 15. the authority shall develop, document and implement at least the credit policies and procedures, which States: 15.1 the desired portfolio structure, portfolio diversification level, level, including the credit limit of the concentration, issued from the borrower's income in a different currency to the currency; 15.2. the credit granting policies, which include: 15.2.1 credit granting criteria and thresholds, 15.2.2. credit granting procedures and customer payment arrangements, 15.2.3, a Committee of the Board (kredītkomitej) and credits the powers and responsibilities of the employees of the credit granting, 15.2.4. conditions and limits of unsecured credits 15.2.5. order of the interest rates and repayment conditions credits with and without collateral, and also loans issued from the borrower's income in a different currency to the currency 15.2.6. borrowers creditworthiness, evaluation criteria, 15.2.7. loan servicing (debt service ratio (DSR-)), that is, the borrowers-individuals-loan servicing expenditure ratio of borrowers (borrowers, family members who agreed to receive credit) the total of the net income for the period, and the index levels for different categories of borrowers, the appropriate security type 15.2.8. various types of security assessment procedures, and guarantee a regular reassessment procedures 15.2.9. credit limit, the amount of the ratio of the value of the collateral (loan to value (LTV-)), 15.2.10. conditions stricter requirements for the granting of credit to borrowers with high credit risk, including a tightening of the SSR or LTV limit applied to borrowers whose income currency different from the currency of the credit; 15.3. credit administration regulations; 15.4. credit risk measurement, evaluation, and monitoring policies and procedures, including credit quality monitoring procedures, which include: 15.4.1. early warning indicators of credit quality and credit with early signs of deterioration in the quality of the monitoring procedure, 15.4.2. credit quality has deteriorated significantly, identification, management and recovery; 15.5. exposed to credit risk of transactions with financial instruments, the operating conditions that include: 15.5.1. appropriate types of transactions and the corresponding limits, 15.5.2. transactions underlying document composition, suitable counterparty 15.5.3. list and their evaluation criteria, 15.5.4. transaction and potential credit risk in the current evaluation of the necessary market information sources, storage, used for the evaluation of models, methods and procedures for the appraisal of these financial instruments is based on their level of liquidity 15.5.5. transactions, involving the powers and responsibilities of staff, reporting arrangements of 15.5.6. contract defaults; 15.6. report on credit risk and the stress test results, filing frequency, as well as a draftsman and beneficiaries; 15.7. reporting arrangements concerning derogations from the approved policies and procedures. 16. the authority determines the concentration of the credit limits: limits transactions 16.1 with one customer or with Group of connected clients; 16.2. thresholds for transactions with persons associated with the institution; 16.3. the limits of iekšgrup; 16.4. limits for claims against institutions; 16.5. the limits of transactions with clients that are associated with a particular economic sector or geographic region; 16.6. the limits of transactions backed by collateral of the same type or one of the financial instruments of the issuer; 16.7. credit limits, issued from the borrower's income in a different currency to the currency. 17. the authority shall assess the need for transactions which are subject to statutory limitations, establish a lower internal limit. 18. Certain loans and other transactions subject to credit risk limits strictly observed, and not adjust the borrower's needs. If the authorities in exceptional cases policy provides for the possibility to derogate from certain limits, this resignation approved by the Executive Board or a Committee empowered to that end. 19. If the Authority's strategy to give credit to borrowers whose financial condition and credit are independent from another Member State or foreign economic, social or political situation, it shall develop, adopt and implement policies and procedures to identify and manage risk and country risk, which is the transfer of the country risk component and is related to the borrower's ability to provide its foreign currency to meet obligations to the authority. Such policies and procedures shall take into account the conditions of the country concerned to the existing restrictions on foreign currency income received. 20. Credit for persons associated with the institution of the award may not be more favourable than the credit terms granted by the authority to unrelated parties in similar circumstances. 21. before the introduction of a new financial services or the admission of the market before the new authority analysed by those services related to the possible extent of credit risk and its impact on the institution's credit risk capital required to cover. The authority shall consider the need to develop new financial services credit risk the management policies and procedures, or to make amendments if the applicable policies or procedures. This requirement applies not only to new financial services but also to the existing financial services whose conditions vary significantly.
III. the Council of the authority and responsibility of the Executive Board of credit risk management 22. Institutions Council is responsible for the management of credit risk and the credit risk confirms the 22.1: the strategy that defines the allowable level of credit risk and operational objectives that the Authority plans to be achieved through the activities exposed to credit risk; 22.2. Approves the credit risk strategy, the most important policy; 22.3. monitor and control how the authorities managed the Authority's activities to the Management Board of the credit risk and whether this action is in accordance with the credit risk strategy and policies; 22.4. that the internal audit Department regularly reviews and assesses compliance with the institution's strategy, its credit policies and procedures and to report to the Council on the results of the inspections; 22.5. determines the procedure for the exchange of information between the Council and the Executive Board, for example, the Management Board shall submit a quarterly report to the Council of the authority for the management of credit risk, which it collects information about the credit risk strategy sets objectives, report on the stress test results and, if necessary, submit a plan of action to address critical situations; 22.6. ensure that institutions pay policy is not contrary to its credit risk strategy and do not encourage short-term profit by doing business exposed to credit risk; 14.1. on a regular basis, but not less frequently than once a year, on the basis of the institution's financial performance, action plans and taking into account changes in legislation, regulatory requirements, economic climate, markets, forecasts, as well as new financial services, credit report strategy and major policies, and evaluate the institution's capital adequacy of credit risk, which is entered into or assume, cover. 23. The Management Board of the authority is responsible for the Authority's Board approved the credit risk strategy, the management of credit risk and credit risk: 23.1. ensure management policy and procedures; 23.2. the credit institution shall ensure that the objectives set out in the strategy and credit risk management policies and procedures; 23.3. determine the powers, duties and responsibilities for the management of credit risk sharing between the departments and the responsible authority staff; 23.4. Approves the report on the management of credit risk stress tests results submission procedures, determining the Department or staff responsible for the preparation and submission of reports, and control their timeliness; 14.6. provides credit and the credit risk involved in managing information about the credit risk strategy, policies and procedures and responsibilities for the policies and procedures of the authority; 14.7. provide the employee association, which meets the qualifications of its tasks in the field of credit risk management; 23.7. ensure that ongoing compliance with the criteria for the award of credits and maintain high ethical standards, making credit risk management; 14.8. Approves the credit concentration limits and ensure compliance.
IV. Grant credits 24. Authority, establish and maintain such credit granting criteria, which is enough to make reasonable decisions about the allocation of credit. Credit granting criteria established for each lending target market, in which the authority shall take actions exposed to credit risk, the credit to be issued, the creditworthiness of borrowers and objectives. 25. before the grant of the credit institution shall assess the creditworthiness of borrowers, analyzing the following: 25.1. purpose and sources of repayment; 25.2. the borrower's current risk profile, including the types of risk, which it is already committed, the total amount of risk and vulnerability to changes in the economy, the collateral value and its market liquidity, credit, currency and the currencies of the borrowers income match; 25.3. credit and income of borrowers currency mismatch in the event of the borrower's ability to meet its debt, if that currency exchange rates and credit interest rates will change significantly for borrowers and borrowers in negative direction is not buy financial instruments for protection against such risk; 25.4. borrower's financial participation in the credit target; 25.5. borrowers — natural persons, income adequacy of expenditure necessary to service the loan, taking into account the institutions established for the category of borrowers loan servicing scorecard, while analyzing the stability of income borrowers, including borrowers in the jobs that are performing economic activities, sectors or geographical region development and position in the market; 15.9. borrowers-economic analyst-operating results, financial position, credit repayment cash flow, as well as the economic sectors or geographical region development and the position of the borrowers, as well as borrowers management competence; 25.7. the borrower's ownership of related group of customers or persons associated with the institution. To determine this, the authority shall establish the procedure for persons associated with the institution, and related groups to identify the customer; 25.8. borrower's credit history and information from external sources, including from the credit register; 16.1. the existence of security, suitability, adequacy, taking into account the credit granting policies limit the ratio of the amount of credit collateral value, as well as the mortgage squeeze or use under different scenarios; 25.10. the third party that the head of the creditworthiness of the credit, to be issued. 26. In deciding on credit conditions, body balanced with each credit risks and expected benefits, taking into account the cost of resources, as well as the security and existence of the restrictive conditions. Credit price for it to cover all costs associated with the credit and offset the risk undertaken by the authority. 27. the authority, issue a credit, the awarding of credit, the amount of the issuing and repayment arrangements, rate of interest and the procedure for the calculation of interest, credit guarantees and other conditions. 28. Giving credit, the institution has an obligation before the conclusion of the contract, to present the customer with honest and complete information on all credit agreement the conditions and risks, URt.sk.: 28.1. regular payment of the customer associated with the loan repayment (loan principal and interest payments) and; 28.2. where a credit agreement is with the variable interest rate, to warn of the risks associated with interest rate increase, the impact on client kredītmaksājum to be carried out, if necessary, giving the customer the numerical examples that illustrate how the interest rate increase may affect parts of the credit to be repaid; 17.6. If the currency of the credit and income of borrowers do not match the currency, warn of the risks associated with currency exchange rates may change direction adverse to the client, and the impact of such changes on the client to kredītmaksājum, compared to the situation when the borrowers income currency corresponds with the credit currency. The authority will provide you with a number of examples which illustrate how the credit exchange rate changes against income the exchange rate can affect parts of the credit refundable. If the borrower's income, the exchange rate is linked to the loan rate, the authority explains the rules of the Exchange. 29. If the authority is participating in the syndicated loan, so before the decision on the granting of credit independent of the main syndicated credit management take credit risk analysis and credit terms. 30. If the authority granting the credit, consider the possibility to accept the collateral, it must first assess the creditworthiness of borrowers, but considers the proposed collateral credit risk-reducing factor. The existence of the security does not replace the creditworthiness of borrowers and required information. 31. For the recognition of collateral in the appropriate authorities to check the legal terms to ensure that the security disposal (acquisition, sales) options, insurance options and other use conditions. 32. If the only source of credit repayment is the realization of collateral, the authority shall take the market value of collateral and liquidity monitoring to verify to what extent the net sales value of collateral covers the credit. 33. If the loan is secured by the credit institution deposits, hosted within the authority is satisfied that there is no impediment to action and commitment to including a mutual, even if the collateral provider to start bankruptcy proceedings. If the transaction (transaction amount) is substantial and subject to multiple jurisdictions, the authority provides a legal opinion on the requirements and obligations of mutual clearing opportunity. 34. the authority shall lay down the procedure by which the decision is taken on the granting, for the adoption of this decision the necessary documents and information, as well as of the Committee (kredītkomitej) or persons depending on the nature and extent of the credit authorized to accept the decision. 35. To ensure decision making compliance with the approved policies and procedures, the authority shall ensure that the decision on the provision of credit, as well as refusal to do documentation, including documents the parties that have made the credit analysis, as well as persons who agreed to grant credit or refused to approve such a decision, stating the grounds for the decision. 36. If the person who analyzes the creditworthiness of borrowers, rightly recommends not to grant credit, but a decision on the issue of credit is taken, however, before credit is issued such a decision approved by the Management Board of the authority.
V. Administration 37. Credit institution shall credit the continued administration, which includes the maintenance of kredītliet, the communication and the necessary document preparation and delivery. 38. the authority shall establish and implement a credit administration system that provides: effective documentation, 38.1. contract provision, the restrictive conditions and security monitoring; 38.2. the management information system for the accuracy of the information supplied and timeliness; 38.3. the principle of the Division of responsibilities, ensuring that the most important original documents, the transfer of resources and information institutions in the various database employees; 23.9. the laws and other legislation, the authorities approved policies and procedures. 39. the Authority constantly check and document the borrower's ability to fulfill its contractual obligations. Kredītliet contains all the information necessary for the borrower's current assessment of the financial situation and of the decision taken and credit history of transparency (for example, current financial statements and analysis, the existence of income borrowers and supporting documents, the use of the credit agreement for the purpose of supporting evidence, the assessment of credit documentation, internal management reports, correspondence with borrowers, borrowers visit reports, security assessment and the results of monitoring of the value or a reference to documents or other media where they are stored).
Vi. Credit risk measurement, assessment and monitoring of the management of credit risk 40. the authority shall ensure that the credit risk measurement, evaluation, and monitoring. 41. in the measurement and evaluation of credit risk, the credit institution shall take into account the foreseeable losses and credit to cover the required amount of capital, that is, the capital, which is to cover unexpected losses. 42. the authority shall establish and implement an individual credit or the credit quality of the portfolio monitoring system of credit quality for continuous evaluation. 43. Credit quality monitoring ensures that: 43.1. the authority understands the borrowers current financial status and creditworthiness; 43.2. the contract conditions are met, including the condition that the issuing of credit is used for the purpose laid down in the Treaty; 43.3. the adequacy of the security are rated to take account of changes in the market and its trends; 43.4. delayed payments are timely identified and credit quality deterioration is found as quickly as possible. The authority shall determine or set of characteristics (e.g. late payment more than 15 days, the company's financial deterioration, the company works for the customer, bankruptcy and the like), which are used for early warning of the deterioration of credit quality and the customer's customer with credit for the inclusion of early deterioration signs (watch list). The authority shall ensure the timely commencement of cooperation with customers and credit quality deteriorated substantially (credit with payment (principal or interest) for more than 90 days late, and other relevant quality characteristics), identification; 43.5. the authority shall carry out a policy or procedure to ensure that credit quality materially deteriorated, recovery, such as the problem of additional analysis of the borrowers, bolster the borrowers current account control, credit and collateral documentation, auditing of the corrective action plan. 44. The management of designated employees, who are responsible for individual loans and loan portfolio quality monitoring, as well as collateral or guarantee provider quality monitoring. The Management Board of the authority, determining employee responsibilities, take into account the possible conflict of interest, in particular the staff whose performance depends on the assessment of such criteria as the total amount of credit, or loan of credit quality or short-term profitability or security assessment. Credit risk monitoring personnel remuneration must not depend on those criteria. 45. the effective monitoring of the quality of the institution may use an internal rating system. Internal rating systems within the borrowers is assigned the internal rating that reflects the creditworthiness and credit quality. Internal ratings of credit risk can be used to cover the necessary capital, credit, price, or quality of the credit portfolio monitoring, estimated the damage and the resulting savings adequacy. 46. in order to ensure the conformity of the internal ratings of credit quality, the Authority regularly reviews internal ratings granted to borrowers. Internal rating determination or approval, as well as the review carried out by the employees who are independent of the credit granting. 47. the body is a methodology that allows it to evaluate individual debtor, securities or the position of the securitisation credit risk exposures and portfolio credit risk level. The authority shall ensure that the credit risk evaluation not rely solely on mechanical external credit assessment institutions (rating agency) credit ratings supplied by the European Parliament and of the Council of 9 September 2009. Regulation (EC) No 1060/2009 on credit rating agencies, as well as using it as the sole criteria for assessing credit risk. 48. the authority shall carry out the monitoring of credit risk of individual credit, credit portfolio, exposed to credit risk or portfolio of transactions (mortgage credit, lines of credit, financial derivatives and other portfolios) and the operation of the authority inherent in the overall level of credit risk. 49. the credit risk measurement, assessment and monitoring authority of the nature and complexity of the transaction to the appropriate analytical methods. Choice of the methods used and the nature of, as well as assumptions and estimates used are documented and reviewed regularly. The authority should not unduly rely on any analytical method in assessing credit risk, because measurement of the quantitative credit risk must always be accompanied by the expert quality rating. 50. the authority consider the possibility that the credit quality deteriorated significantly, to restructure or to develop a credit recovery program, providing, for example, the mortgage law and the guarantee of the right of the insolvency proceedings or. 51. If credit quality deterioration is identified for a substantial share of the credit, such credit to the effectiveness of the management of the authority may create a separate unit, which employs experts with appropriate qualifications and experience. 52. the authority to determine the credit risk monitoring for this purpose, a set of indicators to be used, which may include the following: 52.1. delayed credit totals relative to the total amount of credit; 52.2. the credits created stocks delayed totals relative to the total amount of the credit is overdue; 52.3. the maximum amount of additional savings, which will cover the estimated capital surplus which exceeds the total amount of capital requirements; 52.4. the maximum amount of additional savings, which will be covered by the reporting period without reducing the capital gains; 52.5. allocation of credits under the internal ratings; 52.6. internal ratings migration matrix.
VII. Management information system authority introduced 53. management information system, which allows you to quantify credit risk and provides high-quality, detailed and timely information on managed credit portfolio structure for customers, including information about customer relationships, providing personal information associated with the identification of the body, as well as information about the different size and concentration of the credit limit. 54. the management information system provides information to enable the Council and the Management Board of the authority properly to monitor credit risk management system, including credit risk capital required to cover maintenance and stress test results. Management information system allows for timely and reliable assessment of both the total amount of the credit institution and the activities of the various portfolios or the credit risk and the credit risk referred to judge about the compliance of the credit risk strategy goals. 55. the institutions management information system ensures that all sources of credit risk are identified and the amount of the credit risk is measured and assessed, and credit risk monitoring any portfolio, business unit, subsidiary, group's or sub-group's consolidation level. 56. the management information system provides timely provision of information to the appropriate level of management, or others where the concentration limits have been exceeded. 57. the authority shall establish a formal and transparent communication mechanism to ensure the institution's Council, Board, departments and employees the opportunity to receive information on credit risk management, analysis and monitoring, and to exchange it.
VIII. The credit risk assessment of critical situations and measures for their prevention or elimination of 58. Assessing individual credit institution analysis of economic forecasts and assess the possible critical situations, that is, the possible negative situations when the body of external and internal circumstances, material injury can occur. The amount of credit risk significantly affects the specific changes in the macro-economic indicators and trends. Thus the Authority analysed following the impact of the macro-economic indicators, their profitability, credit to cover any losses which may need capital or other resources available and their prices to overcome the critical situation. This assessment is included in the credit risk management decisions. 59. in order to assess the credit risk of the capital required to cover and identify potential critical situations (such as the economy or individual industries, whose authority is credited, recession, defaults of borrowers about growth, exceeding the expected levels, adverse conditions, which can occur because of various risks, particularly credit risk and market risk, significant correlation), the authority shall carry out the credit risk stress testing not less frequently than every six months. 60. the institution in the development of stress test scenarios and methodologies, parameters and after approval of the Management Board shall take the credit risk stress tests, analyzes the stress test results and use them in managing credit risk, as well as reports to the Council and the Management Board of the authority. 61. in order to ensure the quality of the credit risk stress testing, the authority shall establish such stress scenarios, which includes quantitative and qualitative indicators of credit risk of the effects of changes in different periods and stress levels. The amount of credit risk affects the macro-economic indicators of the country changes, certain sectors of the adverse developments or exceptional events that affected the realization of the projects to be financed, as well as a significant number of such loans, on which borrowers income currency does not match the currency of the credit.
62. The stress test scenarios must be used with a sufficiently significant impact to the body, but not impossible. The stress scenario and the level of detail depends on the total size of the credit institution, the diversity of the portfolio structure as well as of the institution's size. 63. Credit risk stress testing scenarios the authority provides at least two stress event periods-one year and two years of changes. 64. The Authority shall establish and carry out credit risk stress testing at least under two scenarios: a baseline scenario, based on economic projections, which provide relatively significant changes in macroeconomic indicators (GDP, unemployment and inflation about rates, price changes), and the pessimistic scenario, based on significant adverse economic development forecasts. 65. If the credit risk stress test results have shown the potential losses which may be covered by the Authority's surplus capital over authorities to cover all the risk capital required, the Management Board shall examine the possible measures to improve the management of credit risk, to provide this coverage. If potential losses cannot be covered by the Authority's existing capital surplus, the authority shall develop an action plan to ensure the credit needed to cover capital, increasing the share capital or attracting capital, subordinated or selling assets or taking other measures to prevent or reduce stress testing of the possible negative impact of the scenario. 66. the authority shall carry out regular critical evaluation of the likelihood of the occurrence of the situation, evaluate their ability to handle critical situations identified and analysed for the realization of the action plan, based on the assumption that change in relation to one or more variables. 67. the authority shall ensure the stress testing is also in line with the Commission's specific scenario and assumptions, if requested.
IX. The credit risk control 68. the authority shall ensure the control of credit risk management in accordance with the provisions of Commission regulations 01.11.2012. No. 233 "internal control system the legislative provisions" requirements, to assess credit risk management system efficiency.
X. closing question 69. With the entry into force of these regulations shall lapse Commission 28.12.2009. legislative provisions no. 194 "credit risk management regulations".
Informative reference to European Union directives and other international documents the rules included provisions resulting from: 1) of the European Parliament and of the Council of 26 June 2013 Directive 2013/36/EU on access to credit and the credit institutions and investment firms for the monitoring of the prudenciāl, amending Directive 2002/87/EC and repealing Directive 2006/48/EC and 2006/49/EC; 2) Basel Committee on banking supervision, credit risk management "principles" (principles for the management of Credit Risk ", September 2000); 3) Basel Committee on banking supervision "of the Basel Committee on banking supervision, core principles for effective" ("core principles for effective Banking Supervision", September 2012). Financial and capital market Commission Vice Chairman p. Bird