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Archive » December 2023 » Loan pricing Esg oriented and risk adjusted and Eba Guidelines. The Ics model and the challenges for banks

Loan pricing Esg oriented and risk adjusted and Eba Guidelines. The Ics model and the challenges for banks

Pasqualina Porretta, Elisa Bottoni, Ettore Maria Felici, Mauro Marsella, Giuseppe Rutigliani
December 2023 - n. 12
Keywords: Governo del credito, rischi, pricing, Esg
Jel codes: G21, G28, M14

The Eba's Lom Guidelines, fully in force from 2024, create the need for banks to restructure the credit process: strategic planning, credit risk measurement, monitoring and reporting, performance measurement and pricing at risk of loans. The operational implications are intertwined with a series of regulatory interventions (Bcbs regulatory frameworks, Ecb Guide, Technical Standards and Eba Guidelines) focused on Climate and Environmental Risk. The paper analyses the innovations in terms of credit pricing from an Esg perspective and the strategic-operational choices in terms of adjusted risk pricing of the Istituto per il Credito Sportivo and the future challenges for banks. Esg-oriented pricing at risk system becomes a moment of operational synthesis between credit strategies, the assessment of creditworthiness and the measurement of the risk-adjusted loan marginal profitability.

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