Ireland—Banking and Financial Services analysis: This article, was written by Karen Jennings of Dillon Eustace LLP.

The European Banking Authority (EBA) is consulting on its draft regulatory technical standards (RTS) under the Capital Requirements Regulation (CRR3) regarding off-balance sheet items under the standardised approach of credit risk. The RTS provide the criteria that institutions shall use to classify off-balance sheet items, unless explicitly specified in Annex 1 of the CRR. Further, they specify the factors that may constrain the institutions’ ability to cancel the unconditionally cancellable commitments. Responses are sought by 4 June 2024.

The European Banking Authority (EBA) is consulting on targeted amendments to the regulatory technical standards (RTS) on prudent valuation, aiming to promote a more harmonised application of the RTS and to reduce the observed variability of additional value adjustments (AVAs) under the core approach, as well as to set the rules for the application of the prudent valuation framework in extraordinary circumstances. Responses are sought by 16 April 2024.

The European Banking Authority (EBA) has launched three consultations proposing new guidelines and regulatory measures for third-country branches (TCBs) operating in the EU. The proposals include draft guidelines on capital endowment instruments and two draft regulatory technical standards (RTS) on booking arrangements and supervisory cooperation. These measures are intended to implement provisions introduced under the Capital Requirements Directive 2013/36/EU, as amended by Capital Requirements Directive (EU) 2024/1619 (CRD VI). The final guidelines are expected to apply from 11 January 2027, following translation into the official EU languages and publication on the EBA website. Competent authorities will be required to notify the EBA whether they comply within two months of the publication. The RTS will be submitted to the European Commission by 10 January 2026 for endorsement and, once adopted, will be directly applicable across the EU. Responses to all three consultations are sought by 13 October 2025.

The European Banking Authority (EBA) has launched a consultation on a proposed reporting framework to support the validation and ongoing monitoring of initial margin models based on the International Swaps and Derivatives Association (ISDA) Standard Initial Margin Model (SIMM). The EBA assumed its central validation function for pro forma initial margin models under Regulation (EU) No 648/2012 (European Market Infrastructure Regulation (EMIR)), as amended by Regulation (EU) 2024/2987 (EMIR 3), on 1 March 2026, pursuant to Article 11(12a) of EMIR. The proposed framework would require counterparties seeking ISDA SIMM validation to submit regular standardised reporting, with a proportionality mechanism providing reduced, annual-only reporting for counterparties with less significant OTC derivative trading activities. The consultation closes on 2 November 2026. The EBA intends to adopt a Decision by end of 2026; the first reporting reference date is expected to be December 2027, with data collection in the first quarter of 2028.

The European Banking Authority (EBA) has launched a consultation on its revised guidelines on internal governance under Capital Requirements Directive 2013/36/EU (CRD), as amended by Directive (EU) 2024/1619 (CRD VI). The proposed changes reflect updates to the CRD framework and other relevant legislation, including Regulation (EU) 2022/2554 (Digital Operational Resilience Act—DORA). The draft guidelines specify further the requirements under Article 88(3) of CRD VI, including the need for documented statements of role and duties and a mapping of responsibilities for members of the management body, senior managers and key function holders. They also provide guidance to ensure robust governance frameworks for third-country branches, align with DORA, and incorporate findings from the EBA benchmarking report on diversity practices and gender-neutral remuneration policies, as well as lessons learned from supervisory practices across the EU. Responses are sought by 5 October 2025, with a virtual public hearing scheduled for 5 September 2025.

The European Banking Authority (EBA) has launched a consultation on proposed revisions to its product oversight and governance (POG) guidelines for retail banking products, aiming to address the growing risks of greenwashing and ensure that financial institutions uphold high standards of conduct when offering products with environmental, social and governance (ESG) features. Prompted by a 2024 EBA report highlighting a rise in greenwashing cases and recent legislative updates to the Capital Requirements Directive (Directive 2013/36/EU) (CRD) and the Capital Requirements Regulation (Regulation (EU) 575/2013) (EU CRR), the revisions focus on clarifying existing requirements, such as internal controls, target market identification and distributor information, without imposing additional regulatory burdens. Responses are sought by 9 October 2025, with a virtual public hearing scheduled for 11 September 2025, and the final guidelines expected in Q1 2026 for application from 1 December 2026.

The European Banking Authority (EBA) is consulting on its draft Handbook on independent valuers for resolution purposes. The Handbook aims to enhance convergence by providing best practices, high-quality methodologies and processes for the selection and appointment of independent valuers for resolution purposes, as well as examples of the application of these methodologies under some scenarios. Responses are sought by 19 September 2024.

The European Banking Authority (EBA) has published a consultation on draft regulatory technical standards (RTS) concerning the assessment of material model changes and extensions to the Internal Ratings Based (IRB) approach. The proposed updates aim to align the existing RTS with amendments introduced by the third Capital Requirements Regulation (Regulation (EU) 2024/1623) (CRR3) and enhance the supervisory effectiveness of the model change approval process. Responses are sought by 10 March 2025. The EBA will hold a public hearing on 15 January 2025, and all contributions received during the consultation will be published unless requested otherwise.

The European Banking Authority (EBA) is consulting on draft regulatory technical standards (RTS) to identify extraordinary circumstances of market disruption which would permit waiving certain requirements for the calculation of own funds requirements for market risk on the basis of internal models. Responses are sought by 3 November 2023.

The European Banking Authority (EBA) has launched a consultation to amend the regulatory technical standards (RTS) on resolution plans and resolution colleges. The proposed changes are intended to simplify and streamline the structure and content of resolution plans and improve the operational functioning of resolution colleges for cross-border banking groups. The amendments aim to remove unnecessary detail and duplication, improve operational readiness and introduce flexibility to accommodate different resolution scenarios. They also include a clearer distinction between strategy selection and resolvability assessments, and a reorganisation of the resolvability assessment into seven core dimensions. For resolution colleges, the revisions are designed to reduce procedural complexity, improve information exchange and support more effective coordination during planning and execution. Responses are sought by 5 November 2025, with a public hearing scheduled for 16 September 2025.

The European Banking Authority (EBA) has published final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate EU parent undertakings (IPU) under Article 21b of the Capital Requirements Directive 2013/36/EU (CRD IV), as amended by Directive (EU) 2019/878 (CRD V). The guidelines specify how third-country groups should calculate and monitor the total value of their assets in the EU in order to ensure timely application of the IPU requirement.