On 28 July 2025, the European Central Bank (ECB) updated its guide to internal models.
The updated guide includes a new section on machine learning which specifies expectations for using machine learning techniques in internal models. The chapter on credit risk has also been updated which includes clarifications of the responsibilities of senior
On 22 July 2025, the European Commission (Commission) issued a targeted consultation on the treatment of equity exposures incurred under legislative programmes in the Capital Requirements Regulation (CRR).
The Commission is issuing the targeted consultation on a Communication aimed at providing guidance on Article 133(5) of the CRR (equity exposures). The
On 16 July 2025, the European Banking Authority (EBA) published a Handbook on simulation exercises for resolution authorities. The Handbook for the first time provides a comprehensive framework of best practices, methodologies and processes to support resolution authorities in enhancing their preparedness and operational capabilities through structured simulation exercises, harmonising the use
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
On 3 July 2025, the European Commission adopted a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying the conditions for assessing the materiality of extensions of, and changes to, the use of alternative internal models, and changes to the subset of the
On 1 July 2025, the European Banking Authority (EBA) issued a Final Report on acquisition, development and construction (ADC) exposures to residential property under Article 126a of the Capital Requirements Regulation (CRR).
Background
ADC exposures are associated with heightened risk and attract a risk-weight of 150%. Institutions may, however
On 25 June 2025, there was published in the Official Journal of the EU, Regulation (EU) 2025/1215 amending the Capital Requirements Regulation as regards requirements for securities financing transactions under the net stable funding ratio. The Regulation enters into force on the day following its publication in the OJ and applies from 29 June 2025.
On 10 June 2025, the Basel Committee on Banking Supervision issued proposals for a technical amendment to the Basel Framework concerning the standardised approach for operational risk.
The Basel Committee has also finalised a set of frequently asked questions regarding the standardised approach for credit risk. The deadline for comments on the proposed amendments is
On 28 May 2025, the Council of the EU published the text of the draft Regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards requirements for securities financing transactions under the net stable funding ratio. The draft Regulation enters into force on the day following its publication in
On 22 May 2025, the European Parliament published a legislative resolution it had adopted for a proposed Regulation amending the Capital Requirements Regulation as regards requirements for securities financing transactions under the net stable funding ratio. Previously, the European Commission published its legislative proposal for the amending Regulation in March 2025. The Council adopted its