The EBA launches consultation on simplifying the credit risk framework

The European Banking Authority (EBA) launched today a public consultation on its Discussion Paper on the simplification and assessment of the credit risk framework. The Paper sets out preliminary ideas to enhance the usability, efficiency and simplicity of the credit risk framework, aiming to stimulate a broader discussion on how to better structure the EBA’s future work in this area. Based on the comments received, the EBA will assess potential simplifications as part of its future policy work. The consultation runs until 10 May 2026.

The EBA’s 2025 Report on the efficiency of the regulatory and supervisory framework introduced a set of principles aimed at enhancing simplicity and efficiency across the regulatory landscape. This Report recommends the EBA launches a review of all the regulatory products it has developed (Level 2 and Level 3) since its establishment in relation to the Single Rulebook, starting with credit risk. As the credit risk area has accumulated a particularly large number of mandates under the EU Banking Package, the Discussion Paper examines how a systematic review of these mandates could be organised so that EBA’s future work better supports efficiency and simplicity.

The Discussion Paper sets out concrete proposals to enhance the efficiency and simplicity of the credit risk framework within the remit of EBA’s credit risk mandates. Because the framework must balance several key objectives, including risk‑sensitivity, comparability, and cost‑efficiency, assessing simplicity is inherently challenging. In addition to exploring potential policy simplifications, the paper also looks at improving the presentation of the framework by consolidating EBA products and aligning key regulatory definitions, thereby making the EBA’s credit risk outputs more coherent and easier to navigate. It further highlights a number of challenges linked to specific mandates in the credit risk area and sets out measures to be applied in future mandated reports assessing the appropriateness of several elements laid down in the Capital Requirements Regulation (CRR).

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "Send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 10 May 2026. All contributions received will be published following the close of the consultation, unless requested otherwise.

Legal basis and background

The EBA published in December 2023 its roadmap on the implementation of the EU Banking Package.  In the area of credit risk, the new mandates assigned to the EBA relate in many cases to existing EBA products developed and implemented upon previous CRD-CRR requirements. Hence, the implementation of these mandates provides an opportunity to update those products and ensure greater consistency and efficiency across the framework.

The 2025 EBA Report on the efficiency of the regulatory and supervisory framework includes as one of its recommendations to launch a comprehensive review of both the new flow of mandates (i.e. those not yet consulted on) and the existing stock (current products from the Single Rulebook). This Discussion Paper outlines how such a review should be carried out in the credit risk domain and proposes initial avenues to streamline and enhance the usability of the framework.