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On June 26, 2026, the European Central Bank (ECB) published its updated guide on internal models. The document provides guidance on the ECB’s grant of permission on the use of internal models for credit risk, counterparty credit risk and market risk. It aims to ensure a common and consistent approach to matters related to internal models. In particular, it provides guidance on: The overarching principles for internal models. Credit risk. Market risk. Counterparty credit risk. The guide has been updated so as to remove all content related to the estimation of the conversion factor.