The European Banking Authority (EBA) issued regulatory technical standards for market risk, proposed revisions to resolution plan reporting framework, finalized standards for the 2025 benchmarking exercise for banks, and updated the data for identification of global systemically important institutions (G-SIIs).
Below are key highlights of the aforementioned updates:
EBA published final amendments to the regulatory standards on the fundamental review of the trading book (FRTB), to align these standards with the Capital Requirements Regulation (CRR3). The standards are part of the roadmap on the Banking Package. Regarding the risk factor modellability assessment, the standards ensure that institutions are able to identify how far they rely on a third-party vendor for the purpose of assessing the modellability of a risk factor. EBA also responded to the European Commission’s Delegated Act postponing the application of the market risk framework in the EU.
EBA launched consultation on the draft standards overhauling the EBA resolution planning reporting framework (runs until October 30, 2024). The main proposals included in this consultation paper include bringing forward the submission deadline for reporting from April 30 to March 31, an extension of the scope of entities for which data is collected, and an expansion of the information requested on some topics, in particular organizational structure, granular liability data, critical functions, financial markets infrastructures data, critical services, and critical information systems.
EBA published the final draft implementing technical standards, amending the Implementing Regulation on the benchmarking of credit risk, market risk, and IFRS 9 models for the 2025 exercise. The most significant change is in the area of market risk framework, where EBA is proposing to expand to all asset classes the alternative standardized approach validation portfolios compared to the 2024 exercise. In the area of credit risk, EBA suggests only minor changes.
EBA updated the 13 systemic importance indicators and underlying data for the 33 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 billion. The EBA data is published using user-friendly Excel and Power BI tools, as well as bank-specific PDFs.
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