EBA calls for simpler, more unified EU banking supervision
The European Banking Authority (EBA) has published its 2025 Report on supervisory convergence, advocating for a simpler and more efficient EU prudential framework. The report covers key areas including prudential supervision, resolution, and digital finance.
Basel III and Pillar 2 convergence
The EBA's 2025 report details progress and challenges in achieving supervisory convergence across the EU banking sector.
It monitors the implementation of the European Supervisory Examination Programme (ESEP), highlighting results from questionnaires on key topics and findings from supervisory colleges.
A significant focus is placed on the transition towards the full implementation of Basel III standards and the EU Banking Package (CRR3 and CRD6), aiming for a more harmonized prudential framework.
The report also analyses the convergence of supervisory practices in the context of Pillar 2, including overall SREP scores and P2G requirements, noting dispersion within and across competent authorities.
These findings underscore the ongoing efforts to streamline and standardize supervisory approaches.
Resolution, digital, and ESG priorities
The report addresses resolution and crisis management, covering the operationalisation of resolution tools like bail-in and transfer strategies, and management information systems for valuation.
It also delves into digital finance, including supervisory methodologies under MiCA, focus areas for ART and EMT issuers, and crypto classification.
Furthermore, the EBA's engagement with competent authorities on ESG risk supervision and nature-related risks is detailed, alongside AML/CFT college monitoring and implementation reviews.
These diverse areas reflect the evolving landscape of banking risks and regulatory priorities.