On 26 May 2021, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on own funds and eligible liabilities.
The draft RTS align existing provisions to changes introduced in the revised Capital Requirements Regulation in the area of own funds. This is the case, in particular, for provisions relating to the regime of supervisory prior permission for the reduction of own funds. In addition, the draft RTS specify some of the newly introduced criteria for eligible liabilities instruments derived from the own funds regime. These include the absence of direct or indirect funding for the acquisition of ownership of eligible liabilities, the absence of incentives to redeem, the need for the resolution authority’s prior permission for the reduction of eligible liabilities.