On 15 April 2021, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR). The draft RTS seek to ensure that the appropriate method of prudential consolidation is applied for the calculation of the CRR requirements on a consolidated basis. Compared to the draft RTS that were set out in the earlier EBA consultation paper, the final draft RTS have been revised to reflect the amendments introduced as part of the Risk Reduction Measures Package adopted by the European legislators.
The final draft RTS have been developed according to Article 18(9) of the CRR, which mandates the EBA to ‘specify conditions in accordance with which consolidation shall be carried out in the cases referred to in paragraphs 3 to 6 and paragraph 8’ of Article 18 of this Regulation. The final standards have been sent to the European Commission for their adoption as EU Regulations that will be directly applicable throughout the EU.