The German Federal Financial Supervisory Authority has granted credit institutions until December 31, 2026, to apply its circular implementing European Banking Authority guidelines on proportionate diversification methods for retail exposures under Article 123(1) of the Capital Requirements Regulation. The transition period responds to technical difficulties that may prevent some institutions from immediately implementing the circular’s granularity criteria for preferential retail treatment. Institutions must continue to comply with the general requirements for retail exposures under Article 123(1) during the transition.
2026-08-21BaFin
German Federal Financial Supervisory Authority grants transition period for retail exposure diversification criteria until December 31, 2026
The German Federal Financial Supervisory Authority has given credit institutions until December 31, 2026, to implement new granularity criteria for retail exposures. The transition addresses technical implementation difficulties, while the general requirements under Article 123(1) of the Capital Requirements Regulation remain applicable.