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The European Banking Authority (EBA) today published its final Regulatory Technical Standards (RTS) on structural foreign exchange (FX) under the Capital Requirements Regulation (CRR). These standards deliver greater clarity, consistency, and supervisory convergence in the application of structural FX provisions across the EU. The final RTS retain the overall approach of the existing EBA Guidelines, while introducing targeted enhancements to ensure a more harmonised and transparent framework.

The European Banking Authority (EBA) today published a follow-up Peer Review Report on the exclusion from the credit valuation adjustment (CVA) risk of transactions with non-financial counterparties established in a third country. This follow-up Review found that competent authorities continue to largely assess CVA risk sufficiently, using different approaches which are fit for purpose in satisfying the regulatory requirements and the Supervisory Review and Evaluation Process (SREP) Guidelines. Furthermore, since the 2023 Report, all competent authorities have made some progress in strengthening their CVA risk assessments and addressing the follow-up measures suggested as part of that Report.

The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) to specify the conditions and the criteria to assess whether the credit valuation adjustment (CVA) risk exposures arising from fair-valued securities financing transactions are material, as well as the frequency of that assessment.

The European Banking Authority (EBA) today published two Opinions in response to the European Commission’s (EC) amendments relating to the draft Regulatory Technical Standards (RTS) specifying the composition and liquidity requirements of the reserve of assets under the Markets in Crypto-Assets Regulation (MiCA). The EBA considers that the EC’s proposed substantive amendments are not consistent with the prudential framework established by MiCA.

Following the European Commission's adoption of a Delegated Act postponing application of the revised market risk framework in the EU, the so-called Fundamental Review of the Trading Book (FRTB), the European Banking Authority (EBA) today confirmed that its no action letter published on 12 August 2024 would remain fully valid and in place. In addition, the EBA’s considerations on specific issues arising from the FRTB postponement would also remain valid and applicable during the extended postponement period.

The European Banking Authority (EBA) today published its 2024 Reports on the annual market and credit risk benchmarking exercises. For the first time, the EBA also released a specific Report on the fundamental review of the trading book Alternative Standardised Approach (FRTB ASA). These exercises aim at monitoring the consistency of risk weighted assets (RWAs) across all EU institutions authorised to use internal approaches for the calculation of capital requirements.

The European Banking Authority (EBA) today launched a public consultation on draft Regulatory Technical Standards (RTS) on the threshold of activity at which Central Securities Depositories (CSDs) providing ‘banking-type ancillary services’, need to meet certain prudential risk management requirements set out in the Central Securities Depositories Regulation (CSDR). The aim of this work is to allow CSDs to do more settlement of foreign currency in commercial bank money without increasing the risk in CSDs or the overall financial system. This consultation runs until 16 June 2025. A public hearing will be held on 13 May.

The European Banking Authority (EBA) today published its final draft Regulatory Technical Standards (RTS) on the conditions for determining whether an instrument attracting residual risk acts as a hedge. These RTS are part of the Phase 1 deliverables of the EBA roadmap on the implementation of the EU banking package in the area of market risk.