On 9 April, the European Banking Authority (EBA) published a consultation on revised Guidelines on limits on exposures to shadow banking entities carrying out banking activities outside a regulated framework. The EBA explained that the revised Guidelines aim to align with the updated EU large-exposure reporting framework and to support sound risk management and governance practices across institutions.
In particular, the EBA:
- Proposes to align the revised Guidelines with the revised regulatory framework following the entry into force, in January 2024, of the Regulatory Technical Standards specifying criteria to identify shadow banking entities for large-exposure reporting. In particular, to update the scope of application and the basis for limits by moving from eligible capital to Tier 1 capital, while preserving existing governance requirements and the primary and fallback methods for setting exposure limits. The proposal also removes the 0.25% materiality threshold to simplify the framework.
- Invites feedback on potential implementation impacts, current practices and on the possible effects of quantitative limits on lending to shadow banking entities. In addition, it requests information on how institutions identify exposures to shadow banking entities, set limits, and manage related risks.
- Will use this input to support policy decisions when finalising the Guidelines and to inform broader policy work on shadow banking entities feeding into: (i) a report on the contribution of shadow banking entities to the Capital Markets Union and (ii) an assessment of Institutions’ exposures and limits to shadow banking entities, expected to be delivered in December 2027.
The deadline for the submission of comments to the EBA is 9 July 2026.