On 16 July 2026, the European Banking Authority (EBA) published the official translations of its amended guidelines on the application of the definition of default required under Article 178 of the Capital Requirements Regulation (CRR), as amended by CRR III. The final report on the guidelines had been published in May 2026.

Summary

The EBA has introduced targeted amendments to the guidelines to address specific technical aspects of the past-due treatment of non-recourse factoring and provided updates to align with amendments introduced by the CRR III. 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 apply from 19 October 2026.

Competent authorities must notify the EBA as to whether they comply or intend to comply with these guidelines, or otherwise with reasons for non-compliance, by 17 September 2026.