- within Finance and Banking topic(s)
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1. Bank regulation
1.1 PRUDENTIAL REGULATION
a) General
(i) EU
ECB: Consultation on draft Guidelines on managing legacy NPEs in LSIs
Status: Consultation
Deadline for the submission of comments: 27/10/2025
The ECB launched a consultation on a draft Guideline, accompanied by a press release, aimed at harmonising the supervisory approach of national competent authorities (NCAs) to non-performing exposures (NPEs) held by less significant institutions (LSIs). The Guideline seeks to address persistent legacy NPE challenges by establishing supervisory coverage expectations for exposures originated before 26 April 2019, which fall outside the scope of existing Capital Requirements Regulation deduction requirements. Developed in collaboration with NCAs, it reflects the ECB's oversight role within the Single Supervisory Mechanism, promoting the consistent application of high supervisory standards across participating Member States while allowing for the NCAs' supervisory discretion under the Pillar 2 framework. Building on the successful application of a similar approach for significant institutions since 2018, the Guideline is tailored to the specific characteristics of LSIs. It introduces a risk-based, proportionate approach, enabling an NCA to annually determine which LSIs fall under its remit based on specific risk and contextual criteria. This is intended to help avoid distortive effects and ensures tailored supervisory follow-up on a case-by-case basis, taking into account the individual circumstances of each bank. Implementation will be phased in gradually from 31 December 2025 to 31 December 2028, with relevant reporting requirements based on a concise template closely aligned with the existing common reporting (COREP) data submissions.
After the deadline for comments, the ECB will publish a feedback statement and the final Guideline. The consultation is accompanied by FAQ.
Date of publication: 15/09/2025
b) Solvency/Own funds issues
(i) EU
Status: Published in the OJ
Date of entry into force: 20/09/2025
Date of application: 01/01/2026
The Delegated Regulation (EU) 2025/1496 amending the CRR regarding the date of the application of market risk prudential requirements was published in the OJ. While the application of the new market risk requirements, which form part of the Fundamental Review of the Trading Book (FRTB) under the Basel III international standards, had already been postponed to 1 January 2026, this Delegated Regulation further delays their application to 1 January 2027. It follows continued delays and uncertainty regarding FRTB implementation in other key jurisdictions, raising concerns about a level playing field for internationally active banks. Until the new date, financial institutions must continue to apply the existing market risk framework as set out in the CRR as of 8 July 2024 and maintain current reporting and disclosure requirements under pre-FRTB approaches. Competent authorities are encouraged to exercise flexibility in their assessment of internal models during this transitional period to avoid unintended impacts on own funds requirements that are not linked to increases in the underlying market risk.
Date of publication: 19/09/2025
EBA: Extension of consultation deadine fo draft Guidelines on credit conversion factors
Status: Consultation
Deadline for the submission of comments: 29/10/2025
The EBA announced an extension to the consultation deadline for its draft Guidelines on credit conversion factor estimations (EBA/CP/2025/10) under the CRR, as amended by the CRR III. The original deadline of 15 October has now been extended to 29 October 2025. The consultation paper sets out draft Guidelines on the methodology institutions shall apply for their own estimation and application of credit conversion factors under Article 182(5) of the CRR, to ensure alignment and consistency with existing Guidelines on the Probability of Default and Loss Given Default estimation.
Date of publication: 04/09/2025
c) Supervisory reporting
(i) EU
ECB: Adoption of Regulation to amend reporting of supervisory financial information under SSM
Status: Final
The ECB adopted Regulation (EU) (ECB/2025/31) (Amending Regulation) amending Regulation (EU) 2015/534 on the reporting of supervisory financial information (the Financial Reporting Regulation) under the SSM. The Financial Reporting Regulation sets out reporting requirements based on templates developed by the European Banking Authority and laid down in Commission Implementing Regulation (EU) 2021/451, now repealed and replaced by Implementing Regulation (EU) 2024/3117. In line with the principle of proportionality, less significant credit institutions and branches with total assets of EUR3 billion or less are subject to reduced reporting requirements, limited to a subset of data points as specified in Annex III of the Financial Reporting Regulation. In order to exercise oversight over the functioning of the SSM and to promote the consistent application of high supervisory standards, the ECB needs additional data points concerning these less significant credit institutions. The Amending Regulation amends the Financial Reporting Regulation to enable the ECB to collect additional data on those institutions, to enable comparability of outcomes of the supervisory review and evaluation process (SREP).
The Amending Regulation will enter into force on the 20th day following its publication in the OJ and will apply from 30 December 2025.
Date of publication: 09/09/2025
EBA: Draft technical package and new enhanced DPM 2.0 glossary
Status: Consultation
Deadline for the submission of comments: 19/09/2025
The EBA published a draft technical package for version 4.2 of its reporting framework, marking a key milestone in the transition to the DPM 2.0 standard and the introduction of a fully enhanced semantic glossary. This early publication aims to support reporting entities in preparing for the upcoming changes ahead of the final release scheduled for November 2025. The EBA welcomes feedback on both the draft technical package and the new glossary.
Date of publication: 05/09/2025
Publication of Better Data Sharing Regulation to streamline EU financial data reporting
Status: Published in the OJ
Date of application: 18/09/2025
The Better Data Sharing Regulation (Position (EU) No 5/2025), formally adopted by the Council of the EU on 8 July, was published in the OJ, together with the Council's Statement of Reasons. The Regulation amends seven foundational EU laws to streamline supervisory reporting and improve data sharing among EU financial authorities. Key features include: (i) a requirement for the European Supervisory Authorities, through the Joint Committee and in cooperation with other EU bodies, to deliver a feasibility report within five years (i.e., by 18 September 2030) on a cross-sectoral integrated reporting system. Based on its findings and a comprehensive impact assessment, the European Commission may, where appropriate, put forward a legislative proposal; (ii) calls for consistent application of the "report once" principle, whereby authorities should obtain information from other authorities that have already collected it, rather than requesting it again from reporting entities, provided this does not compromise the entities' ability to perform their tasks; (iii) a shift from biannual to annual reporting under the InvestEU Programme; (iv) clarification of the scope and conditions for both mandatory and voluntary data sharing; and (v) encouragement for authorities to enter into memoranda of understanding to support information exchange.
Date of publication: 29/08/2025
d) Disclosure
(i) EU
EBA: Launch of 2025 EU-wide transparency exercise
Status: Final
The EBA launched its 2025 EU-wide Transparency Exercise with the aim to enhance transparency and market discipline in the EU financial system. This exercise complements banks' own Pillar 3 disclosures under CRD and provides market participants with consistent and comparable information on the condition of EU banks. The 2025 exercise will disclose data of over 100 major EU banks on their capital positions, financial assets, risk exposure amounts, sovereign exposures and asset quality. The data will cover the period from the third quarter of 2024 to the second quarter of 2025. The results will be published at the beginning of December, together with the EBA's Risk Assessment Report (RAR). As in previous years, the exercise relies exclusively on supervisory reporting data, ensuring no additional reporting burden for banks. Alongside the dataset, the EBA will provide interactive tools that allow users to explore and compare data across time, countries, and individual banks.
Date of publication: 29/09/2025
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