The European Banking Authority (EBA) has published a final draft amending regulatory technical standards to reduce the processing time for applications to decrease own funds and eligible liabilities from four to three months.
The European Banking Authority (EBA) has published its final draft amending Regulatory Technical Standards (RTS) on own funds and eligible liabilities. The amendments shorten the timeframe for competent and resolution authorities to process applications from four to three months.
The EBA concluded that authorities now have sufficient experience with these procedures to carry out assessments more efficiently. The targeted amendments aim to reduce unnecessary regulatory burdens for institutions.
Additionally, following the exemption introduced by Directive (EU) 2024/1174 (the Daisy Chain Act), which removes the requirement for liquidation entities to obtain prior permission to reduce eligible liabilities instruments, the RTS provisions for these entities have been deleted.
Legal basis for these standards includes Articles 78 and 78a of Regulation (EU) No 575/2013, as amended by Regulation (EU) 2019/876. The 2021 update extended the assessment period from three to four months. Based on recent experience, the EBA now proposes reverting to a three-month timeframe.
