Commission rejects draft rules on bank capital permissions
The European Commission has rejected draft technical standards from the European Banking Authority aimed at speeding up prior permission for reducing bank capital. The EBA confirmed on September 9, 2026, that it will now integrate the proposals into a broader regulatory review.
Shorter timelines put on hold
The European Commission decided not to endorse the draft Regulatory Technical Standards (RTS) submitted by the European Banking Authority (EBA) on March 19, 2026.
The targeted package proposed amendments to Commission Delegated Regulation (EU) No 241/2014 to shorten the application period for institutions seeking prior permission to reduce own funds and eligible liabilities instruments.
Under the existing framework adopted in 2021, banks and national competent authorities had repeatedly described the permission procedures as unnecessarily lengthy and administratively cumbersome.
The non-adoption by the Commission halts the targeted fast-track adjustments, leaving the existing 2021 supervisory timelines in place across the European Union banking sector.
Pivoting to a comprehensive overhaul
In response to the non-endorsement, the EBA announced that it will follow the Commission’s guidance and pursue a comprehensive overhaul of the technical standards.
Rather than implementing quick standalone amendments, the regulator plans to address capital reduction rules within a wider review of the delegated regulation.
This broader exercise aims to deliver structural simplification and administrative efficiency for banks and supervisors at a later stage.
A missed chance for immediate relief
Shelving quick timeline fixes leaves European lenders stuck with cumbersome procedures.
The Commission trades immediate operational relief for a slower, comprehensive overhaul.
For capital-issuing banks, this prolongs unnecessary friction without adding supervisory value.