Recital 3

(3)Furthermore, a new international accounting standard, International Financial Reporting Standard 9 (IFRS9), was adopted through Commission Regulation (EU) 2016/2067 ³ . This introduced new rules for the measurement of credit losses, and, as a result, directly impacted on the amount of own funds and regulatory ratios reported. Commission Implementing Regulation (EU) 2021/2017 ⁴ reflected that impact on the reporting requirements under Implementing Regulation (EU) 2016/2070 by adding two new Annexes to that Regulation, one with the templates for reporting the IFRS9 impact and the other with the instructions for completing those templates. Those Annexes aimed at producing benchmarks for the probability of default for common counterparties. In line with the timeline presented in the published roadmap ⁵ in July 2019 on IFRS 9 deliverables by the EBA, it is necessary to complement those templates by adding the benchmarking of the loss given default (LGD) parameters.