The European Banking Authority (EBA) today launched a public consultation to amend the EU Delegated Regulation on own funds and eligible liabilities. The proposed key amendment is the shortening of the timeframe to process the applications to reduce own funds and eligible liabilities instruments under the Capital Requirements Regulation (CRR), with the aim of simplifying processes. The consultation runs until 9 October 2025.
Leveraging on the experience that competent and resolution authorities have gained during the past few years, and to allow institutions more flexibility in their capital planning, the EBA is proposing to shorten the timeframe to process the applications to reduce own funds and eligible liabilities instruments from four to three months. The initiative is in line with the EBA’s commitment in 2021 to monitor how the submission and assessment of applications is implemented in practice. In addition, the simplified procedure for the reduction of MREL eligible liabilities for liquidation entities is removed from the RTS, in line with recent amendments of the Level 1 text.
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 9 October 2025.
A public hearing on this consultation will take place via conference call on 2 September 2025 from 9:00 to 10:00 CEST. Deadline for registration is 28 August 2025 at 16:00 CEST.
Legal basis and background
The 2021 update of the RTS on own funds and eligible liabilities instruments, among other changes, extended the timeframe to reduce own funds and eligible liabilities instruments from three to four months. The extension was necessary to cater for the more complex assessment that competent and resolution authorities needed to undertake.
The industry considered the four-month timeline too long in 2021 and the EBA committed to monitoring the implementation. As a result of the monitoring, in 2024, the EBA considered that competent and resolution authorities had gained the necessary experience and were able to process applications within a shorter period.
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