What Changed
- The European Commission rejected draft RTS submitted by the EBA on 19 March 2026 designed to shorten prior permission processing.
- The amendments targeted processing under the 2021 RTS, which industry and authorities considered unnecessarily lengthy.
- The EBA will undertake a broader review of the RTS in line with the European Commission's proposal.
European banking institutions and competent supervisory authorities are impacted by the European Commission's non-adoption of draft targeted amendments to Commission Delegated Regulation (EU) No 241/2014. The European Commission informed the European Banking Authority (EBA) of its decision not to endorse the draft Regulatory Technical Standards (RTS) submitted by the EBA on 19 March 2026. The proposed amendments were intended to accelerate prior permission applications under the 2021 RTS, which both the banking industry and competent authorities had found unnecessarily lengthy. Following the decision, the EBA announced it will proceed with a broader review of the RTS, aligning with the European Commission's proposal to deliver future simplification and efficiency gains.
Who May Be Affected
Banking institutions, financial entities, and competent authorities in the EU applying for prior permission to reduce own funds and eligible liabilities instruments.
Cross-Border Context
Applies across European Union Member States under EU banking regulatory framework.
What to check next
- Monitor EBA announcements regarding the launch and timeline of the broader RTS review.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.