European Central Bank Banking Supervision has streamlined its supervisory assessments for certain capital and securitisation operations, introducing two fast-track processes from January 2026 that aim to cut approval times to around two weeks from three months for standardised transactions. Existing global standards and European regulatory requirements continue to apply in full, and operations that do not qualify will remain subject to the normal, more detailed assessment. For capital reductions, the fast track covers requests to repurchase capital instruments and share buybacks, where prior ECB approval is required under EU rules. Repurchases of capital instruments other than shares may qualify where the impact on the capital ratio is below 100 basis points and capital is expected to remain above requirements and guidance for at least three years, while share buybacks must also meet conditions including a medium or low-risk capital adequacy score, sufficient profit retention, and the ability to meet capital requirements and guidance under severe financial stress; a streamlined submission process will also provide early confirmation of application completeness and in-principle eligibility, with Joint Supervisory Teams retaining discretion to request more information. For securitisations, the fast track applies to standardised significant risk transfer cases where the securitised portfolio is performing, not concentrated, contains no more than 20% leveraged loans, has a capital-ratio impact below 25 basis points, and uses standardised early termination clauses, alongside increased scrutiny of micro- and macroprudential risks to prevent undue risk-taking, over-reliance on capital benefits and rollover risk from large-scale synthetic securitisations; detailed qualifying criteria are set out in the Guide on the notification of significant risk transfer and implicit support for securitisations.
European Central Bank - Banking Supervision 2025-12-19
European Central Bank launches two-week fast-track approvals for standardised capital reductions and significant risk transfer securitisations
The European Central Bank Banking Supervision will implement two fast-track processes for capital and securitisation operations, cutting approval times from three months to two weeks for standardised transactions starting January 2026. The capital reduction fast track covers repurchases and share buybacks under specific conditions, while the securitisation fast track applies to standardised significant risk transfer cases with detailed criteria. Existing global standards and European regulatory requirements remain fully applicable, with non-qualifying operations subject to normal assessments.