European Banking Authority launches consultation on simplifying the EU credit risk framework

The European Banking Authority (EBA) has opened a public consultation on a discussion paper setting out preliminary options to simplify and assess the EU credit risk framework. The paper is intended to inform the EBA’s future policy work by identifying ways to make the framework more usable, efficient and straightforward, with potential simplifications to be evaluated based on stakeholder feedback. The discussion paper builds on the EBA’s 2025 report on the efficiency of the regulatory and supervisory framework, which recommended a review of the EBA’s Level 2 and Level 3 Single Rulebook products, starting with credit risk given the volume of mandates arising from the EU Banking Package. Proposals include consolidating EBA products, aligning key regulatory definitions to make outputs more coherent and easier to navigate, and setting out approaches for future mandated reports assessing the appropriateness of selected elements in the Capital Requirements Regulation (CRR). The consultation is open until 10 May 2026, and submissions will be published after the consultation closes unless respondents request otherwise.