On 9 July 2025, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) amending RTS on own funds and eligible liabilities instruments.
Background
When it published the final draft RTS on own funds and eligible liabilities on 26 May 2021, the EBA acknowledged comments received during the consultation that the extension of the prior permission regime timeline from three to four months was too long. Whilst at the time of the publication the draft RTS the extension was justified by the need to adequately cater for the more complex assessment that Member State competent and resolution authorities were expected to undertake, the EBA committed to monitoring the practical implementation and authorities’ practices.
Consultation
As a result of the monitoring, the EBA is now of the view that the relevant authorities are able to process the applications within a shorter period. As such it deems it reasonable and justified to revert to a shortened time frame of three months to process applications to reduce own funds and eligible liabilities instruments.
The EBA is publishing draft amending RTS focusing only on this very narrow scope.
Next steps
The deadline for comments on the consultation paper is 9 October 2025.
A public hearing on the consultation will take place on 2 September 2025. The deadline for registration is 28 August 2025.
After the consultation, the EBA will submit the final draft RTS to the European Commission for the adoption process. Once published in the EU Official Journal, the draft RTS will amend Commission Delegated Regulation (EU) No 241/2014.