On 7 May 2026, the European Banking Authority (EBA) issued a final report amending its Guidelines on the application of the definition of default.
The EBA has introduced targeted amendments to address specific technical aspects of the past-due treatment of non-recourse factoring and provided updates to align with amendments introduced by the Capital Requirements Regulation 3. It also confirms that the 1% threshold applied to reductions in net present value loss (NPV threshold) in debt restructuring remains appropriate for prudential default recognition.
Next steps
The Guidelines will be translated into the official EU languages and published on the EBA’s website. The deadline for Member State competent authorities to report whether they comply with the guidelines will be two months after the publication of the translations. The guidelines will apply from 3 months after the date of publication on the EBA’s website of the guidelines in all EU official languages.