What Changed
- Streamlining supervisory templates by introducing a single, reduced, and integrated risk assessment report.
- Expanding joint decision scope to include Pillar 2 Guidance (P2G) and leverage ratio-related Pillar 2 requirements and guidance.
- Aligning the joint decision process with CRD V and revised SREP guidelines based on over ten years of supervisory college experience.
The European Banking Authority (EBA) has launched a public consultation on proposed revisions to the Implementing Technical Standards (ITS) governing joint decisions on institution-specific prudential requirements. Mandated under Article 113(5) of Directive 2013/36/EU (Capital Requirements Directive or CRD), these standards establish uniform conditions for the joint decision-making process regarding capital and liquidity requirements for cross-border banking groups within supervisory colleges.
The proposed amendments update Commission Implementing Regulation (EU) No 710/2014 to align regulatory procedures with current supervisory practices, changes introduced by CRD V, and the revised EBA Guidelines on the Supervisory Review and Evaluation Process (SREP). This initiative forms part of the EBA’s broader communication campaign, “Simplifying to strengthen: building a more efficient EU prudential and supervisory framework,” and implements Recommendation 2.4 of its Report on the efficiency of the regulatory and supervisory framework, published on 1 October 2025.
Key proposed changes include:
- Introducing a single, reduced, and integrated risk assessment report to streamline supervisory templates;
- Supporting a more holistic and coordinated assessment of institutions’ prudential requirements and guidance;
- Incorporating qualitative supervisory measures more clearly into the joint decision process; and
- Updating the scope of joint decisions to encompass Pillar 2 Guidance (P2G) as well as leverage ratio-related Pillar 2 requirements and guidance.
These revisions aim to enhance the efficiency of supervisory college operations, reduce administrative burdens, and ensure consistent communication of supervisory assessments to cross-border banking institutions across the European Union.
Stakeholders can submit comments via the EBA consultation page until 4 January 2027 at 23:59 CEST. A virtual public hearing will take place on 10 November 2026 from 10:00 to 11:00 CEST, with registration required by 9 November 2026 at 16:00 CEST. Comments received will be published following the consultation period unless requested otherwise.
Who May Be Affected
Cross-border banking groups operating in the EU, EU national banking supervisors within supervisory colleges, and financial institutions.
Cross-Border Context
Applies directly to joint decision processes for cross-border banking groups subject to EU supervisory colleges.
What to check next
- Register for the EBA virtual public hearing by 9 November 2026 at 16:00 CEST.
- Submit written comments via the EBA consultation page before 4 January 2027 at 23:59 CEST.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.