On 4 March 2024, the European Banking Authority (EBA) published a Consultation Paper on its draft Regulatory Technical Standards (RTS) under the Capital Requirements Regulation (CRR3) relating to the allocation of off-balance sheet items under the standardised approach of credit risk.

The draft RTS set out:

  • The criteria that institutions will be required to use to classify off-balance sheet items, unless explicitly specified in Annex 1 of the CRR.
  • The factors that may constrain institutions’ ability to cancel unconditionally cancellable commitments.

The RTS form part of phase 1 of the EBA roadmap on the implementation of the EU banking package and are intended to contribute to a more robust regulatory framework, efficient supervision and enhanced risk control by credit institutions.

The consultation runs until 4 June 2024.