Definition of “effective procedures” to monitor that the property taken as credit protection is adequately insured against the risk of damage.

The competence to interpret European legislation belongs exclusively to the Court of Justice of the European Union. In the absence of a formal definition under EU law and a definitive interpretation by the Court, the meaning of "effective procedure" has to be determined depending on the context, as well as existing prudential regulation, supervisory practice and jurisprudence.  Disclaimer:  This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.