ECB - Draft regulation on the materiality threshold for credit obligations past due


On 3 July 2018, the ECB published a consultation document regarding the draft regulation on the definition of the materiality threshold for credit obligations past due.

The definition will be included in an ECB regulation that introduces a single materiality threshold for all significant entities within the Single Supervisory Mechanism, for both retail and all other types of exposure, regardless of the method used for calculating capital requirements.
The materiality threshold will comprise an absolute component, expressed as a specific maximum amount for the sum of all amounts past due by a debtor (100 euros for retailexposures, 500 euros for all other types) and a relative component, expressed as a percentage (1%) that reflects the amount of the credit obligation past due in relation to the total amount of all on-balance sheet exposures to the debtor in question.

The materiality threshold will increase the comparability of banks’ defaulted exposures.

The consultation will end on 17 August 2018 and the regulation will come into force from 31 December 2020.


Download the Consultation Document here aside