On 9 January 2026, the European Banking Authority (EBA) issued a report on the completeness and appropriateness of the definitions and provisions on consolidation under Article 18(10) of the Capital Requirements Regulation (CRR).

The EBA states that the report is the first comprehensive assessment of the EU regulatory framework on prudential consolidation conducted pursuant to Article 18(10) of the CRR. As such it draws on a detailed data collection exercise involving 70 institutions from 26 EU/EEA countries, including global systemically important institutions, other systemically important institutions, and non-systemic banking groups. The assessment combines quantitative analysis of balance sheet data with qualitative insights into institutional practices so as to provide a robust evaluation of how the consolidation provisions are applied in practice.

The EBA’s key finding is that it considers the prudential consolidation framework to be overall robust and fit for purpose. Nonetheless it has identified a number of targeted areas where further clarification, harmonisation, or legislative refinements may be warranted. The EBA puts forward a set of targeted recommendations and clarifications to further strengthen the prudential consolidation framework and its implementation among institutions.