Author: Selwyn Manning

Source: European Banking Authority

• The EBA proposes a proportionate ESG disclosure framework aligned with the European Commission’s initiative to simplify sustainability reporting.
• Simplified requirements are proposed for small and medium banks, as well as clarifications and enhancements to streamline reporting. No new obligations are introduced for large-listed banks.
• To support institution’s implementation, the EBA proposes to introduce transitional measures and supervisory flexibility aimed at reducing the compliance burden for institutions.

The European Banking Authority (EBA) today launched a public consultation on proposed amendments to the European Commission’s Implementing Regulation on Pillar 3 disclosures under the CRR3. The proposal specifies enhanced and proportionate disclosure requirements related to ESG-related risks, equity exposures and aggregate exposure to shadow banking entities. It also implements the new codes for the statistical classification of economic activities in the EU (NACE).  The. Today’s proposal aims to enhance transparency and consistency of disclosures in a proportionate manner. The consultation runs until 22 August 2025.

This consultation paper finalises the implementation of the Pillar 3 disclosure requirements introduced by the banking package (CRR3), including the extension of the scope of application of ESG risks-related disclosures to all institutions and the disclosure of information on shadow banking and equity exposures.

In line with the European Commission’s omnibus proposal  to reduce reporting costs and simplify sustainability reporting, the EBA has designed a proportionate approach for ESG disclosures based on the institution’s type, size and complexity, with simplified disclosures for banks other than large, particularly for those that are small or non-listed.

Furthermore, the consultation does not introduce any new requirement on banks already disclosing ESG related information (large listed banks),  but aims to simplify the reporting process by clarifying the existing requirements based on the experience gained. It does this by introducing materiality considerations regarding the frequency of some of the disclosures and by ensuring full and permanent alignment with the Taxonomy Regulation in terms of scope and definition of the Green Asset Ratio (GAR) templates.

Transitional provisions have been introduced to support institutions and facilitate the initial implementation of the new requirements. For ESG disclosures, in particular, consistently with these transitional provisions, in order to clarify expectations, ensure consistency and reduce operational burden, for the period until the ITS now being consulted starts applying, the EBA is encouraging supervisory flexibility. For this purpose, the EBA is considering issuing a no action letter advising competent authorities not to prioritise the enforcement of the disclosure of certain templates related to the Green Asset Ratio and Taxonomy Regulation for large and listed institutions; nor the enforcement of the disclosure of any ESG-related templates for other institutions.

Finally, the EBA is further supporting institutions in their compliance with disclosure requirements by providing an updated mapping tool between Pillar 3 and supervisory reporting.

Consultation process

Responses to the consultation can be sent to the EBA by clicking on the “Submit response” button on the consultation page.

All contributions received will be published after the consultation closes, unless requested otherwise. The deadline for the submission of comments is 22 August 2025

A public hearing on this consultation will take place via conference call on 26 June 2025 from 11:00 to 12:30 CEST. Deadline for registration is 24 June 2025 at 16:00 CEST.

Legal basis and background

Regulation (EU) 2024/1623 of the European Parliament and of the Council amending Regulation (EU) No 575/2013 (CRR3) implements the Basel Committee on Banking Supervision (BCBS)’s December 2017 Basel III post-crisis regulatory reforms in EU, while considering the specific aspects of the EU’s banking sector. The new banking package envisages further harmonisation of supervisory powers and enforcement tools and an increase in transparency and proportionality in the Pillar 3 disclosure requirements.

The EBA’s plan on how to implement the mandates included in the Banking Package is explained in the ‘EBA Roadmap on strengthening the prudential framework’, published in December 2023. Commission Implementing Regulation (EU) 2024/3172 including the new and amended disclosure requirements directly linked to Basel III implementation was published last year as part of step 1 of the EBA roadmap. As part of step 2 of the EBA roadmap, the Pillar 3 disclosure framework is amended to consider the other CRR 3 amendments to Part Eight of the CRR, including disclosure requirements on equity exposures (Article 438(e) of CRR3); new disclosure requirements on the aggregate exposure to shadow banking entities (Article 449b of CRR3); and the extension of the scope of application of disclosure requirements on ESG risks to all institutions (Article 449a of CRR3).

In addition, the Guidelines on disclosure of non-performing and forborne exposures (EBA/GL/2018/10 as amended by EBA/GL/2022/13) are repealed, considering the extension of the disclosure requirements on non-performing exposures and forbearance to listed SNCI and other non-listed institutions in accordance with the CRR 3 Articles 433b and 433c.

On February 26, 2025, the Commission published the Omnibus proposal aimed at simplifying sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and Taxonomy Regulation.

Source: European Banking Authority

• All national deposit guarantee schemes (DGS) in the European Union (EU) have reached the envisaged minimum target level.
• The funds have been built up over a 10-year period through contributions from credit institutions and are directly available to reimburse depositors in the case of a bank failure.
• The amount of deposits protected by the DGSs increased by 3.2% to €8.6tn from 2023 to 2024.

The European Banking Authority (EBA) today published end-2024 data related to two key concepts and indicators in the Deposit Guarantee Schemes Directive (DGSD), namely financial means available to, and covered deposits protected by, national deposit guarantee schemes. The EBA publishes this data for each Member State, and on a yearly basis to enhance the transparency and public accountability of DGSs across the EU to the benefit of depositors, markets, policymakers, DGSs and Members States. Following a 10-year build-up phase, the EU DGS funds have reached €79bn of available means in aggregate.

The DGSD ensures the adequate protection of depositors when banks fail, by guaranteeing that deposits up to a certain level will always be repaid even if the bank holding them fails. Covered deposits are guaranteed up to €100,000 or the equivalent in other currencies per depositor at each bank. The data as of 31 December 2024 shows that, compared to 2023, the amount of covered deposits across the EU further increased by 3.2% to €8.6tn, after increases of 1.7% in 2023 and 2.5% in 2022.

Furthermore, all banks in the EU have been obliged to contribute to funds held by the DGSs in their jurisdiction for the main purpose of reimbursing depositors within seven days after a bank failure. The deadline for those funds to reach the minimum required target level of usually 0.8% of covered deposits for the first time was 3 July 2024. The end-2024 data shows that all 33 EU DGSs are at or above that target level. In total, funds available to protect deposits in case of bank failures rose by 11.1% to €79bn in 2024. DGSs have in place additional arrangements, to require credit institutions to make additional contributions to the fund and/or to make additional short-term funding available should the need arise.

The public data includes data for the EU countries, Iceland, Norway and Liechtenstein, which together form the European Economic Area (EEA). The total covered deposits in the EEA amount to €8.8tn and the total available financial means in the EEA funds amount to €81bn at the end of2024.

Legal basis and background

The EBA is collecting data on deposit guarantee schemes in accordance with Article 10(10) of the DGSD. As per its Decision EBA/DC/2018/243 from 23 July 2018, the EBA makes this data publicly available on its website.

Furthermore, in support of the DGSD, the EBA published in December 2021 the Guidelines EBA/GL/2021/17 on the delineation and reporting of AFMs of the DGSs and, thus, expanded the reporting requirements from DGSs to the EBA.

Source: Government of the Netherlands
Accountability Day and 2024 Central Government Annual Financial Report The Netherlands’ public finances are strong. Despite a slight contraction in the first quarter, the Dutch economy grew by 1.0% in 2024. Growth was stronger than expected, which had a positive impact on public finances. The budget deficit for 2024 was 0.9% of gross domestic product (GDP). These conclusions can be found in the Central Government Annual Financial Report for 2024, the year in which the Schoof government took office at the beginning of the summer.

Source: European Banking Authority

Note to the editors  

Source: European Banking Authority

The European Banking Authority (EBA) today repealed its Guidelines on specification of types of exposures to be associated with high risk due to the application of the new capital requirement regulation (CRR 3). The repeal of the Guidelines aims at providing legal certainty to the market. 

The Guidelines were published on the 15^th of March 2019, as mandated per CRR article 128 last sub-paragraph. They clarified which exposures should be considered as “high risk exposures”. Given that this exposure class no longer exists in CRR 3, as Article 128 now only refers to ‘subordinated debt exposures’, the Guidelines are no longer applicable.  

Source: European Banking Authority

The European Banking Authority (EBA) today updated the list of other systemically important institutions (O-SIIs) in the EU, which, together with global systemically important institutions (G-SIIs), are identified as systemically important by the relevant authorities according to harmonised criteria laid down in the EBA Guidelines. This list is based on year-end-2024 data and includes the overall score calculated according to the EBA Guidelines and the capital buffer rate that the relevant authorities have set for the identified O-SIIs. The list is available also through a user-friendly visualisation tool.

The EBA Guidelines define the size, importance, complexity and interconnectedness as the criteria to identify O-SIIs. They also provide flexibility to relevant authorities to apply their supervisory judgment when deciding to include other institutions, which might have not been automatically identified as O-SIIs. This approach ensures a comparable assessment of all financial institutions across the EU, whilst still not excluding those firms that may be deemed systemically important for one jurisdiction on the basis of certain specificities.

The list published today aims to increase transparency in the EU by providing an overview of OSIIs, including some key facts about the banks identified. 175 banks were identified as systemically important in 2024 (at the highest level of consolidation in each country) with buffer rates ranging from 0.25% to 3%, as shown in the chart below. Relevant authorities disclose further details on the underlying rationale and identification process for their respective jurisdictions. This additional information may be relevant to understand the specific features of each O-SII and to get some insight in terms of supervisory judgment, optional indicators used, buffer decisions and phase-in implementation dates. As underscored in the Capital Requirements Directive (CRD), the assessment of systemic importance necessary to identify O-SIIs remains under the remit of the national competent or designated authorities.

Source: European Banking Authority

The European Banking Authority (EBA) today published an updated Report on the monitoring of the liquidity coverage ratio (LCR) and the net stable founding ration (NSFR) in the EU. This update is necessary in light of the banking turmoil experienced in March 2023, which highlighted the need for enhanced supervision of various liquidity aspects resulting from the change in the interest rate environment and related trends in deposit behaviour and concentrations.

In particular, this Report provides further clarification for the recognition in the LCR calculation of LCR inflows from open reverse repos without a maturity date within 30 days, following Q&A 2024_7053 (published on 3 May 2024). It builds on two approaches, the first of which builds on the occurrence of a trigger event to terminate the transaction, and the second one on historical experience. The Report also considers how recently, in some banks, operational deposits increased while excess operational deposits decreased, and how the interest rate environment changed. In this context, the Report supplements the guidance provided in the EBA’s 2019 Report on identifying operational deposits, the characteristics of the operational deposit trade cycle, and the material penalty for retail term deposits.

Lastly, an Addendum to the EBA’s 2023 Report on interdependent assets and liabilities in the NSFR is also included. It clarifies regulatory expectations regarding indirect client clearing activities, where affiliated institutions rather than an IPS structure – which is already covered in the 2023 Report – are involved.

Legal basis, background, and next steps

The LCR is applicable in the EU since 1 October 2015, and its full implementation at a minimum of 100% became effective in January 2018. The NSFR is applicable in the EU at a minimum of 100% since 28 June 2021.

Moreover, article 428f(3) of the CRR mandates the EBA to monitor the assets and liabilities treated as interdependent and to determine whether the criteria required in paragraph 1 of the same Article are met. The EBA shall report to the Commission on the results of that monitoring and shall advise the Commission on whether an amendment to the conditions set out in paragraph 1 or an amendment to the list of products and services in paragraph 2 would be necessary. Derivative client clearing activities are mentioned under Article 428f(2)(d) of the CRR.

The EBA published Reports on the monitoring of LCR and NSFR in EU in 2019, 2021 and 2023, and a 2023 report on interdependent assets and liabilities in the NSFR.

The EBA will continue monitoring some specific aspects of the LCR and NSFR due to current circumstances and interest rate environment to set out its observations and provide further guidance, where necessary.

The EBA will also assess further the need to amend/complement the existing regulatory reporting on liquidity requirements. 

Source: Government of the Netherlands

News item | 12-05-2025 | 17:06

Foreign minister Caspar Veldkamp: ‘I am pleased with this decision by the ICAO Council, first and foremost because of what it means for the next of kin of the victims of the downing of Flight MH17. It cannot take away their grief and pain, but the decision is an important step towards establishing the truth and achieving justice and accountability for all victims of Flight MH17, and their families and loved ones. This decision also sends a clear message to the international community: states cannot violate international law with impunity.’

In the coming weeks the ICAO Council will consider what form of reparation is in order. In that context the Netherlands and Australia are requesting that the ICAO Council order the Russian Federation to enter into negotiations with the Netherlands and Australia, and that the Council facilitate this process. The latter is important in order to ensure that the negotiations are conducted in good faith and according to specific timelines, and that they will yield actual results.

ICAO is a specialised agency of the United Nations with 193 member states. Under the Chicago Convention these states may not use weapons against civil aircraft in flight. It is for the ICAO Council to decide whether countries have violated the Convention. 

The decision was reached on Monday by a vote among the members of the ICAO Council. A large majority of the Council members voted in favour of the Netherlands’ and Australia’s position.

Source: European Banking Authority

The European Banking Authority (EBA) today published its updated final draft implementing technical standards (ITS) on resolution planning reporting. This comprehensive review of the ITS on the provision of information for the purposes of resolution plans seeks to achieve full harmonisation of reporting requirements in the EU and avoid duplication of data requests, thus reducing the cost of compliance with resolution planning reporting obligations by institutions. Proportionality has been a key driver of this regulatory product.

These ITS improve the usability of the data collected by resolution authorities reflecting the latest developments in resolution planning, crisis preparedness and policies, and delivering efficient practices. These ITS promote harmonisation, proportionality and simplification in resolution planning reporting by avoiding parallel data collections, and eliminating data points that are either redundant or of limited value. Proportionality has been enhanced with the streamlining of datapoints to avoid overlaps and the reporting requirements are based on the size and complexity of institutions. More specifically, measures to support simplification and proportionality include:

• relieving entities from parallel data collections based on legal obligations coming from different authorities;
• Implementing a modular core-plus-supplement approach that reduces the scope of reporting obligations for certain categories of reporting entities based on their size and complexity.;
• removing duplications and overlapping data points with MREL/TLAC, CoRep and FinRep, where the reporting entity has already submitted this data.

Next steps

Following the mandate for the EBA to develop IT solutions, these ITS will repeal the Commission’s Implementing Regulation (EU) 2018/1624, with a view to making the technical standards more user-friendly for institutions. The IT solutions according to which supervisory reporting data has to be provided, including templates and instructions, can be found on the EBA website.

During Q4 2025 the EBA will publish a technical package including the DPM, validation rules and taxonomy, that shall be used by institutions to submit this resolution planning reporting information to resolution authorities.

Legal basis and background

The Bank Recovery and Resolution Directive (BRRD) requires resolution authorities to draw up resolution plans that outline the actions to be taken in case an institution meets the conditions for resolution. The ITS on procedures, standard forms and templates for the provision of information for the purpose of resolution plans sets out a procedure that should be followed when resolution authorities require information about an institution for the purpose of drawing up a resolution plan. 

Source: European Banking Authority

The European Banking Authority (EBA) today launched a public consultation on its draft amending Regulatory Technical Standards (RTS) on the types of factors to be considered by national authorities in assessing the appropriateness of real estate risk weights. This review is driven by the revised Capital Requirements Regulation (CRR 3), which confers a new mandate onto the EBA. The consultation runs until 30 May 2025.

Based on the assessment of the CRR3 changes to the treatment of exposures secured by immovable property, the only proposed amendment to the existing RTS consists in updating the relevant legal references to align with the new banking framework.

It is important to note that the original RTS were delivered jointly with another set of technical standards on the appropriateness of the minimum loss given default (LGD) values for retail exposures secured by immovable property. For the sake of simplification and regulatory consistency, the EBA is, therefore, proposing to align both RTS with the CRR3.

Given the narrow scope of the amendments to the RTS, the EBA will run this consultation over only month. 

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 30 May 2025.

A public hearing  will take place via conference call on Tuesday 13 May from 14:00 to 15:00 CEST. The deadline for registration is the 9 May 2025, 16:00 CEST.

All contributions received will be published after the consultation closes, unless requested otherwise.

Legal basis and next steps

These draft RTS have been developed according to Article 124(11) of Regulation (EU) 2024/1623 (CRR3), which mandates the EBA, in close cooperation with the European Systemic Risk Board, to develop draft RTS to specify the types of factors to be considered for the assessment of the appropriateness of the risk weights referred to in article 124(11).