The European Banking Authority (EBA) issued an opinion on the European Commission’s proposed amendments to draft technical standards on operational risk, highlighting concerns over two specific proposals affecting supervisory effectiveness.
The European Banking Authority (EBA) has published an opinion regarding the European Commission’s proposed amendments to the final draft Regulatory Technical Standards (RTS) on operational risk under the Capital Requirements Regulation (CRR).
The EBA considers that two proposed amendments could impact the consistency, transparency, and supervisory effectiveness of capital requirements for operational risk.
On 2 March 2026, the European Commission informed the EBA of its intention to endorse, with amendments, the draft RTS submitted by the EBA in June and August 2025.
The EBA reaffirms its commitment to a prudent, transparent, and consistent implementation of the operational risk framework and invites the European Commission to reconsider two amendments.
First, the Commission proposes to allow the combined use of the accounting approach (AA) and the prudential boundary approach (PBA) for calculating the financial component of the business indicator. The EBA believes that applying only one approach to the full balance sheet is necessary to maintain framework coherence. The combined use is not aligned with Basel standards and may increase complexity, create inconsistencies, and facilitate regulatory arbitrage, benefiting only a limited number of institutions.
Second, the Commission proposes to limit notification obligations to competent authorities to material changes in the scope of the PBA when used with the AA. The EBA considers this could weaken supervisory effectiveness by introducing institution-specific materiality judgments, complicating supervisory reviews.
The EBA supports other proposed amendments that improve readability and legal certainty.
This opinion is issued under Article 10(1) of Regulation (EU) No 1093/2010, which mandates the EBA to provide opinions on draft RTS with amendments endorsed by the European Commission.
The prudential treatment of operational risk is outlined in Articles 311a to 323 of Regulation (EU) No 575/2013 (CRR). The RTS specify components of the business indicator, profit and loss adjustments, and a harmonized risk taxonomy for operational risk.
