ECB Internal Models Sanction: What the BIL Enforcement Action Means for IRB Governance and Capital Reporting
An ECB-approved internal model is a supervisory decision the bank asked for and agreed to run. Treat it as optional for a few quarters and the capital ratios you report to the ECB stop being true. That is the practical lesson from the ECB internal models sanction announced on 29 June 2026, when the European…
