Revised standards streamline joint decisions on bank capital
Cross-border banking groups face revised rules for joint supervisory decisions under draft standards published by the European Banking Authority. The proposals integrate Pillar 2 Guidance and introduce a single risk assessment template for colleges.
Single templates and wider scope
The European Banking Authority (EBA) proposes targeted amendments to the Implementing Technical Standards under Article 113 of the Capital Requirements Directive, replacing rules dating back to 2014.
The revised framework introduces a single, reduced and integrated risk assessment report to replace fragmented reporting within colleges of supervisors.
Furthermore, the draft broadens the scope of joint supervisory decisions to formally incorporate Pillar 2 Guidance alongside leverage ratio-related Pillar 2 requirements and guidance.
Qualitative supervisory measures are also integrated more clearly into the decision-making process.
The proposals build on more than ten years of college experience and reflect recent updates to the Supervisory Review and Evaluation Process.
Ten years of college practice
The proposed changes implement Recommendation 2.4 of the EBA report on regulatory and supervisory efficiency from October 2025, updating Commission Implementing Regulation (EU) No 710/2014.
Stakeholders can submit feedback on the consultation paper until January 4, 2027 at 23:59 CEST.
The EBA will also host a virtual public hearing on November 10, 2026, with registrations closing on November 9 at 16:00 CEST.
All received comments will be published after the consultation period closes.
Streamlining overdue bureaucracy
Consolidating templates into a single risk report eliminates long-standing frictions across supervisory colleges.
Formalizing Pillar 2 guidance updates regulatory reality to match everyday oversight practices.
Yet procedural efficiency alone cannot overcome the deeper problem of national capital ring-fencing.