On 6 June 2024, the European Banking Authority (EBA) issued a consultation on three sets of draft Regulatory Technical Standards in accordance with the mandates provided to it under Articles 317(9) and 316(3) of the Capital Requirements Regulation and 321(2) of the Capital Requirements Regulation 3.

The draft RTS are on:

  • Establishing a risk taxonomy on operational risk. The draft RTS provide a list of operational risk event types, categories and attributes that institutions must use when recording operational risk loss events, in line with the current framework and international standards.
  • The conditions under which it would be unduly burdensome for an institution to calculate the annual operational risk loss recognise cases when it would be disproportionate for an institution to promptly calculate the annual operational risk loss. In such cases, the draft RTS allow for a temporary waiver from the requirement to calculate the annual operational risk loss.
  • The adjustments to an institution’s loss data set following the inclusion of losses from merged or acquired entities or activities. The draft RTS provide indications on the currency and the risk taxonomy to be used when incorporating the loss data set of merged entities or activities.

​A public hearing will take place in the form of a webinar on 4 July 2024, 15:30 – 17:00 CET.

The deadline for comments on the consultation is 6 September 2024.

The intention, depending on the feedback received, would be to finalise the three draft RTS by end-2024.