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Recital 20

Recital 20

(20)With a view to ensuring consistency with international standards, the benchmarks of the long-run and short run default rates provided in the document ‘Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised Framework — Comprehensive Version’ dated June 2006, should be used for the purpose of the mapping exercise. However, more detailed rules should be provided to account for the variety of ECAIs that currently operate in the EU market and whose default rates may significantly deviate from the pattern of the international ECAIs underlying the current benchmark. More concretely, the long-run benchmark should be defined in terms of intervals to acknowledge that a range of values can be compatible with each credit quality step.

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