On Wednesday 1 October, the European Banking Authority (EBA) unveiled 21 recommendations for actions to simplify the European Union’s banking rules, without calling into question the EU’s “credibility” in applying the international standards of the Basel Committee.
These recommendations cover four main areas: drawing up implementing measures (levels 2 and 3) for European legislation; reporting obligations; the EBA’s contribution to the European prudential framework; and internal working methods.
According to the EBA, around 20% of the future mandates it will be given in order to develop/apply implementing measures (levels 2 and 3) of EU legislation could be ‘deprioritised’. At the same time, the European authority will review the implementing measures already in place, starting with the “most complex” subjects, such as credit risk, the governance of financial institutions and executive remuneration, social and environmental criteria and supervisory/resolution processes.
The EBA also estimates that it is possible to reduce reporting costs for banks by 25%, in particular by having more proportionate requirements, by minimising legislative overlap and by aligning obligations more closely at national and European level.
The European authority also intends to consider how to streamline capital requirements (CET1 capital, reserves, leverage, MREL), again with a proportionate application of the rules according to the complexity of banking groups. On Wednesday, ECB Vice-President Luis De Guindos noted the complexity of European rules that have introduced “more than ten” capital buffers, Reuters reported.
Certain recommendations, which the authority can implement itself, will be incorporated into its 2026 work programme.
See the EBA recommendations: https://aeur.eu/f/iqb
Presented on the same day, the authority’s work programme sets out three priorities: develop a body of rules governing a resilient internal banking market; carry out risk analyses to support the task of banking supervision; and integrate technological innovation to serve stakeholders.
In 2026, the EBA’s powers will be expanded when it starts to supervise EU-based crypto-asset issuers (MiCA Regulation). Powers relating to the fight against money laundering, on the other hand, will be transferred to AMLA, the new dedicated European authority.
See the EBA’s 2026 work programme: https://aeur.eu/f/iqa (Original version in French by Mathieu Bion)