The EBA publishes roadmap on the implementation of the EU Banking Package

  • Press Release
  • 14 December 2023
  • The EBA plays an important role in the implementation of the Basel III framework through the Banking Package in the EU. 
  • The set of regulatory products to be the developed by the EBA, will together with the Banking Package itself, further underpin a robust regulatory framework, efficient supervision, and enhanced risk control by credit institutions. It will also improve proportionality and level-playing field for the EU Single Market.
  • As part of the roadmap, the EBA is consulting on the first batch of regulatory products in the areas of market risk, Pillar 3 disclosures and supervisory reporting.

The European Banking Authority (EBA) today published its roadmap on the Banking Package, which implements the final Basel III reforms in the EU. The EBA roadmap aims at strengthening the prudential framework as well as ensuring an international level playing field. It also aims at providing clarity to the industry on how it will develop the mandates implementing the legislation, and how it expects to finalise the most significant components ahead of the application date, on 1 January 2025. 

The Banking Package also includes some innovations to the European prudential framework of credit institutions with a number of mandates for the EBA. This will deepen the EU single market with the elaboration of a regime with regards to third country branches. In addition, it will support the green transition as it includes new rules requiring banks to systematically identify, disclose and manage risks arising from environmental, social and governance factors (ESG) as part of their risk management. Furthermore, the Package provides stronger enforcement tools for supervisors overseeing EU banks, aiming at ensuring their sound management and, ultimately, protecting financial stability.  Finally, with the mandate to the EBA to build a Pillar 3 data hub, it will provide users with direct and easy access to Pillar 3 information and reinforce market discipline.

The EBA roadmap confirms that the sequencing in the development of the regulatory products will follow their legal deadlines, most of which will be consulted on and finalised within the two to three years after the entry into force of CRR3 and CRD VI. 

The first batch of regulatory products that are part of the EBA roadmap was also published today for consultation. These include two draft Implementing Technical Standards (ITS) amending Pillar 3 disclosures and supervisory reporting requirements, a discussion paper on the Pillar 3 data hub, an amended draft Regulatory Technical Standards (RTS) on the standardised approach for counterparty credit risk, and an amended RTS on the treatment of foreign-exchange and commodity risk in the banking book, the profit and loss attribution test and the risk factor modellability assessment.

Notes to editors

The EU Banking Package was  agreed between the Council of the European Union and the European Parliament. Tt consists of amendments to the CRR and the CRD and implements the final elements of the Basel III reform in the EU. 

The EBA is expected to deliver around 140 mandates on a broad range of technical areas.

The EBA roadmap has been prepared on the basis of the now publicly available compromise text, which is expected to be published in the Official Journal over the course of 2024. 

The EBA has followed the finalisation of the legislative process on the banking package closely and contributed to its transparency on the capital impact with the publication of its impact assessment reports

Image
Basel 3 Roadmap

Documents

EBA Roadmap on strengthening the prudential framework

(1.63 MB - PDF)

Press contacts

Franca Rosa Congiu