The Entschädigungseinrichtung deutscher Banken (EdB) has included Creditreform Rating AG in its portfolio of recognized rating agencies. This means that the rating agency can now carry out the credit checks for risk-oriented premium measurement.
The EdB, a subsidiary of the Bundesverband deutscher Banken e.V., ensures statutory deposit insurance and investor compensation (up to EUR 100,000) for private banks in Germany and is therefore an important institution in the financial system. In accordance with the Compensation Scheme Financing Ordinance (EntschFinV), the EdB carries out regular checks on the credit institutions assigned to it – currently 183 – to assess the risk of a compensation event occurring and uses external ratings for the risk-oriented calculation of contributions. Since March 2023, Creditreform Rating, as a rating agency recognized by the EdB, has also been taking on credit checks, thus expanding the range of services for banks.
Creditreform Rating has been conducting ratings for German insurance companies, pension funds, pension schemes, companies and banks since 2000. In order to receive recognition from the EdB, the rating agency has demonstrated relevant experience in the field of credit institutions over the past five years.
“For us, recognition by the EdB represents an important milestone. The next and even more significant step would be recognition by the ECB as an external credit assessment institute under the Eurosystem credit assessment framework (ECAF). That would give us another big boost, both nationally and internationally,” says Dr. Michael Munsch, Member of the Management Board of Creditreform Rating AG.
The extensive ECAF approval process is currently still ongoing. If the decision is positive, companies and organizations whose debt instruments are to be taken into account by the ECB could also commission a European agency for the first time.