The European Banking Authority (EBA) has recently announced two significant updates for banks. These include an update to the final draft implementing technical standards on resolution planning reporting and a proposed amendment to the technical standards on factors assessing the appropriateness of real estate risk-weights. The consultation period on technical standards on real estate risk-weights ends on May 30, 2025.
Standards on resolution planning reporting
These updated standards aim to enhance the usability of collected data, reflecting the latest developments in resolution planning and crisis preparedness. Overall, compared to the latest version of the standards on Resolution Planning reporting (Regulation 2018/1624), approximately 1 500 data points have been added, of which approximately 1,440 (including data points that existed before, but the definition has changed) are already reported by institutions under the supervision of the Single Resolution Board (SRB). The measures aim to promote proportionality and simplification in resolution planning reporting by:
relieving entities from parallel data collections based on legal obligations coming from different authorities.
implementing a modular core-plus-supplement approach that reduces the scope of reporting obligations for certain categories of reporting entities based on their size and complexity.
removing duplications and overlapping data points with MREL/TLAC, CoRep and FinRep, where the reporting entity has already submitted this data.
The draft standards provide for the new framework to be operational in 2026, with the first reporting reference date set for December 31, 2025. The EBA will publish a technical package comprising data point model (DPM), validation rules, and taxonomy during Q4 2025; this package will aim to enable institutions to submit resolution planning reporting information to resolution authorities. The final updated standard and relevant data point model (DPM) is expected to be delivered in Q3 2025. The standards have been split into two modules for submission, with these remittance dates applying annually from 2026 onward:
A first module, covering organizational structure and liability data (aggregate and granular), will have a remittance date of March 31.
A second module, for critical functions, relevant services, and Financial Market Infrastructures (FMIs), will retain a remittance date of April 30.
Consultation on real estate risk-weights
The EBA is consulting on draft amending regulatory technical standards for the assessment of appropriateness of risk-weights for exposures secured by immovable property. The standards also cover the conditions for evaluating the suitability of minimum loss given default (LGD) values. These amendments are primarily driven by recent changes introduced in the Capital Requirements Regulation (CRR3) regarding real estate exposures.
The consultation paper, published on April 30, 2025, proposes to maintain the existing factors specified under Article 1 of Delegated Regulation (EU) 2023/206. The key adjustment involves aligning legal references with the CRR3. Notably, the amended Article 164 of CRR3 introduces "LGD input floor values" applicable at the individual exposure level, replacing the previous "minimum LGD values" at portfolio level. EBA is mandated to deliver the final report on the draft standards by January 10, 2026.
Implications for banking sector
Both these EBA developments highlight the ongoing efforts to strengthen the resilience and stability of the European banking sector. The enhanced reporting requirements for resolution plans will provide authorities with better information to manage potential bank failures, while the refined approach to real estate risk-weights aims to ensure that capital requirements adequately reflect the risks associated with this significant asset class. For financial institutions, these updates necessitate a proactive approach to compliance, as early preparation will be key to a smooth transition and to avoiding potential regulatory sanctions.
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