Distribution of loans according to risk category
Article 9
1. For the calculation of the distribution of loans according to risk category, in absolute numbers and as a percentage, as referred to in Article 6(4), point (c), of Regulation (EU) 2020/1503, crowdfunding service providers shall ensure that each individual loan is assigned to the relevant risk category set out in the risk management framework on the basis of sound and well-defined criteria, as referred to in Article 4(4), point (f), of Regulation (EU) 2020/1503, and as specified in accordance with Article 19(7), point (d) of that Regulation. 2. For the purposes of paragraph 1, and for each risk category, the following definitions shall apply: (a) the distribution of loans according to risk category in absolute numbers shall refer to the sum of the notional amount of every loan in the same risk category; (b) the distribution of loans according to risk category as a percentage shall refer to the ratio between: (i) the sum of the notional amount of every loan in the same risk category; (ii) the total notional amount of all loans within the portfolio. 3. For the disclosure of information to investors, crowdfunding service providers shall establish and maintain clear and effective policies and procedures for the specification of the risk categories.