EBA seeks input on credit risk framework simplification

The EBA's 2025 Report on the efficiency of the regulatory and supervisory framework introduced principles for enhancing simplicity.

This report recommended a review of all EBA regulatory products (Level 2 and Level 3) developed since its establishment, starting with credit risk.

The credit risk area has accumulated a particularly large number of mandates under the EU Banking Package, making it a priority for systematic review.

The Discussion Paper examines how such a review could be organised to ensure the EBA's future work better supports efficiency and simplicity within the Single Rulebook.

This initiative provides an opportunity to update existing products and ensure greater consistency and efficiency across the framework, especially as new mandates related to the EU Banking Package are implemented.

The Discussion Paper presents concrete proposals to enhance the efficiency and simplicity of the credit risk framework within the EBA's mandates.

It acknowledges the inherent challenge of assessing simplicity, given the need to balance risk-sensitivity, comparability, and cost-efficiency.

The paper also aims to improve the framework's presentation by consolidating EBA products and aligning key regulatory definitions, making outputs more coherent and easier to navigate.

It highlights challenges linked to specific mandates and sets out measures for future reports assessing elements of the Capital Requirements Regulation (CRR).