On September 22, 2015, the European Banking Authority published a consultation paper on its draft guidelines specifying the application of the definition of default in relation to the Internal Ratings Based Approach and the Standardized Approach under the Capital Requirements Regulation. The draft guidelines aim to harmonize the definition of default across the EU framework so that EU banks apply regulatory requirements to their capital positions in a more consistent, comparable and uniform way. The guidelines provide clarification for the definition of default, also covering issues such as indications of unlikeliness to pay, the days past due criterion for default identification and the conditions for a return to non-default status. Comments are due by January 22, 2016.

The consultation is available at: http://www.eba.europa.eu/documents/10180/1198203/EBA-CP-2015- 15+%28CP+on+GL+on+the+application+of+the+definition+of+default%29.pdf