On 8 November 2024, the European Central Bank (ECB) issued a public consultation on revised policies which outline how the ECB will use the options and discretions available to supervisory authorities under EU banking law. The options and discretions relate to several prudential topics. These include the definition of own funds, how to calculate capital requirements for certain risk categories, which asset types are included in the trading book and what exclusions are allowed when determining the consolidation scope of a banking group. The updates are being produced primarily due to the new EU Banking Package, although they also reflect other supervisory developments since the last revision in 2022. The consultation closes on 10 January 2025.