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Article 18 – Roles and functions established in the risk management framework ⬅️ | ➡️ Article 20 – Approval of crowdfunding projects
Article 19 - Risk categories
1.
Crowdfunding service providers shall ensure that the assignment of loans to risk categories in accordance with Article 18(1)(b) reflects:
(a)
the levels of risk of the respective crowdfunding projects as determined by the output of internal credit scoring models in accordance with Chapter I;
(b)
specific factors that are related to the loan, including, but not limited to, the interest rate, the maturity of the loan and the frequency of payment instalments.
2.
Crowdfunding service providers shall ensure that:
(a)
the risk-management framework contains adequate procedures for reviewing the assignment of loans to categories and for re-assigning them to a new risk category whenever there is a change in the respective credit scoring or in other factors related to the loan;
(b)
each risk category is associated with a probability of default.