The European Banking Authority has decided to conclude its dedicated work on monitoring legacy instruments, reflecting its long-standing expectation that these grandfathered instruments should be eliminated over time. Going forward, the EBA will not prioritise this specific monitoring stream, while continuing its broader review of the quality of own funds and eligible liabilities. The legacy instruments covered are own funds instruments benefiting from grandfathering provisions under the Capital Requirements Regulation (CRR1 and CRR2). The EBA’s earlier support for the phase-out included Opinions published in 2020 and 2022 on the prudential treatment of legacy instruments and the outcome of their implementation, alongside regular monitoring of the stock of such instruments and assessments of individual cases. The EBA expects competent authorities to continue monitoring the remaining limited and specific cases based on this guidance.
European Banking Authority 2026-02-25
European Banking Authority concludes dedicated monitoring of legacy own funds instruments
The European Banking Authority (EBA) will stop monitoring legacy instruments, own funds under CRR1 and CRR2 grandfathering provisions, aligning with its expectation for their gradual elimination. The EBA will continue reviewing own funds and eligible liabilities, while competent authorities monitor remaining specific cases.