The European Banking Authority (EBA) has launched a public consultation to amend the EU Delegated Regulation setting regulatory technical standards on own funds and eligible liabilities instruments. The core proposal is to reduce the processing timeframe for applications to reduce own funds and eligible liabilities instruments under the Capital Requirements Regulation from four months to three months, and to remove the simplified procedure for reducing minimum requirement for own funds and eligible liabilities (MREL) eligible liabilities for liquidation entities. The draft changes draw on recent experience of competent and resolution authorities and are intended to simplify processes and provide institutions more flexibility in capital planning. The EBA noted that a 2021 update of the RTS had extended the timeframe from three to four months to accommodate more complex assessments, and that subsequent monitoring led it to conclude in 2024 that authorities can now handle applications within a shorter period. The consultation is open until 9 October 2025. A public hearing will be held by conference call on 2 September 2025 from 9:00 to 10:00 CEST, with registration closing on 28 August 2025 at 16:00 CEST.
European Banking Authority 2025-07-09
European Banking Authority launches consultation to shorten approval timelines for reducing own funds and eligible liabilities instruments to three months
The European Banking Authority has initiated a public consultation to amend the EU Delegated Regulation on regulatory technical standards for own funds and eligible liabilities instruments. The proposal aims to reduce the application processing timeframe from four months to three months and eliminate the simplified procedure for MREL eligible liabilities for liquidation entities. These changes are based on recent experiences to enhance flexibility in capital planning.