On 9 February 2026, the European Banking Authority (EBA) launched a consultation on its Discussion Paper on the simplification and assessment of the credit risk framework.
Background
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. Thar report recommended the EBA launch 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.
Summary
The Discussion Paper sets out preliminary ideas to enhance the usability, efficiency and simplicity of the credit risk framework, in particular it:
- Sets out concrete proposals to enhance the efficiency and simplicity of the credit risk framework within the remit of EBA’s credit risk mandates, this is with the stated of balancing several key objectives, including risk‑sensitivity, comparability, and cost‑efficiency, assessing simplicity is inherently challenging.
- Looks at improving the presentation of the framework by consolidating EBA products and aligning key regulatory definitions, with the aim of making the EBA’s credit risk outputs more coherent and easier to navigate.
- 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).
Next steps
Based on the comments received, the EBA will assess potential simplifications as part of its future policy work. The EBA has asked for responses until 10 May 2026.