The European Banking Authority has launched a public consultation on draft amendments to the technical standards that govern how institutions assign risk weights to specialised lending exposures under the Supervisory Slotting Criteria Approach. The proposals update the framework for the revised Capital Requirements Regulation, align the rules with CRR3 terminology and categories, add environmental, social and governance risk drivers to the assessment criteria, and seek to improve the framework's risk sensitivity, clarity and usability across the EU. The draft would align the standards with the CRR3 categories of project finance, income-producing real estate, object finance and commodity finance. It would also allow institutions to apply factor weights below the current 5% floor where they can empirically demonstrate that a factor does not materially contribute to risk differentiation, clarify the treatment of unfunded credit protection, add explicit documentation requirements for overrides and validation, and revise the annex criteria through new or amended sub-factors covering issues such as refinancing risk, corruption risk, transaction governance, tranched exposures with securitisation characteristics, transportation risk and commodity price volatility. The consultation paper states that specialised lending exposures in the EU total EUR 1.6 trillion of exposure at default, with 19% currently treated under the SSCA. Comments are due by 7 August 2026. A public hearing will be held by conference call on 27 May 2026, with registration open until 22 May 2026 at 10:00 CEST.
European Banking Authority 2026-05-07
European Banking Authority consults on CRR3-aligned specialised lending SSCA amendments with ESG criteria and more flexible factor weights
The European Banking Authority has launched a public consultation on draft amendments to technical standards for assigning risk weights to specialised lending exposures under the Supervisory Slotting Criteria Approach, updating the framework for the revised Capital Requirements Regulation. The proposals introduce environmental, social and governance risk drivers, clarify the treatment of unfunded credit protection, strengthen documentation and validation requirements, and revise annex criteria, including new sub-factors on refinancing, corruption, governance, tranched exposures, transportation and commodity price risks.